The comparative balance sheets for 2024 and 2023 and the income statement for 2024 are given in the next two sheets for Orange Company. Additional information from Oranges accounting records is provided as follows. a. Investment revenue includes Orange Companys $6 million share of the net income of Demur Company, an equity method investee. b. Treasury bills were sold during 2024 at a gain of $2 million. Orange Company classifies its investments in Treasury bills as cash equivalents. c. Equipment originally costing $70 million that was one-half depreciated was rendered unusable by a flood. Most major components of the equipment were unharmed and were sold for $17 million. d. Temporary differences between pretax accounting income and taxable income caused the deferred tax liability to increase by $3 million. e. The preferred stock of Tory Corporation was purchased for $25 million as a long-term investment. f. Land costing $46 million was acquired by issuing $23 million cash and a 15%, four-year, $23 million note payable to the seller. g. The right to use a building was acquired with a 15-year lease agreement; present value of lease payments, $82 million. Annual lease payments of $7 million are paid at the beginning of each year starting January 1, 2024. h. $60 million of bonds were retired at maturity. i. In February, Orange issued a stock dividend (4 million shares). The market price of the $5 par value common stock was $7.50 per share at that time. j In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $9 million.

Required: 1. Prepare a spreadsheet for preparation of the statement of cash flows (direct method) of Orange Company for the year ended December 31, 2024 2. Prepare the statement of cash flows of Orange Company for the year ended December 31, 2024. Present cash flows from operating activities by the direct method. (A reconciliation schedule is not required.)

Orange Company Income Statement For Year Ended 31-Dec-24 (\$ in millions) Revenues and gain: Sales revenue Investment revenue Gain on sale of Treasury bills $423 Expenses and loss: Cost of goods sold $410 Salaries expense Depreciation expense Amortization expense Insurance expense $410112180731227281836 Loss on sale of equipment Income tax expense Net income 356$67 Orange Company Comparative Balance Sheets December 31, 2024 and 2023 (\$ in millions) 2024 2023