The comparative balance sheets for 2024 and 2023 and the income statement for 2024 are given below for Arduous Company. Additional information from Arduouss accounting records is provided also. ARDUOUS COMPANY Comparative Balance Sheets December 31, 2024 and 2023 ($ in millions) 2024 2023 Assets Cash $ 136 $ 94 Accounts receivable 203 220 Investment revenue receivable 19 17 Inventory 222 213 Prepaid insurance 17 25 Long-term investment 195 138 Land 222 163 Buildings and equipment 425 426 Less: Accumulated depreciation (111) (146) Patent 48 50 $ 1,376 $ 1,200 Liabilities Accounts payable $ 63 $ 91 Salaries payable 19 31 Interest payable (bonds) 21 17 Income tax payable 25 29 Deferred tax liability 37 21 Notes payable 30 0 Lease liability 89 0 Bonds payable 228 301 Less: Discount on bonds (35) (41) Shareholders Equity Common stock 469 423 Paid-in capitalexcess of par 121 98 Preferred stock 88 0 Retained earnings 243 230 Less: Treasury stock (22) 0 $ 1,376 $ 1,200 ARDUOUS COMPANY Income Statement For Year Ended December 31, 2024 ($ in millions) Revenues and gain: Sales revenue $ 535 Investment revenue 25 Gain on sale of Treasury bills 2 $ 562 Expenses and loss: Cost of goods sold 193 Salaries expense 86 Depreciation expense 13 Amortization expense 2 Insurance expense 20 Interest expense 41 Loss on sale of equipment 32 Income tax expense 49 436 Net income $ 126 Additional information from the accounting records: Investment revenue includes Arduous Companys $19 million share of the net income of Demur Company, an equity method investee. Treasury bills were sold during 2024 at a gain of $2 million. Arduous Company classifies its investments in Treasury bills as cash equivalents. Equipment originally costing $96 million that was one-half depreciated was rendered unusable by a flood. Most major components of the equipment were unharmed and were sold for $16 million. Temporary differences between pretax accounting income and taxable income caused the deferred tax liability to increase by $16 million. The preferred stock of Tory Corporation was purchased for $38 million as a long-term investment. Land costing $59 million was acquired by issuing $29 million cash and a 15%, four-year, $30 million note payable to the seller. The right to use a building was acquired with a 15-year lease agreement; present value of lease payments, $95 million. Annual lease payments of $6 million are paid at the beginning of each year starting January 1, 2024. $73 million of bonds were retired at maturity. In February, Arduous issued a stock dividend (9.2 million shares). The market price of the $5 par value common stock was $7.50 per share at that time. In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $22.00 million. Required: Prepare the statement of cash flows of Arduous Company for the year ended December 31, 2024. Present cash flows from operating activities by the direct method.