The comparative balance sheets for 2024 and 2023 are given below for Surmise Company. Net income for 2024 was $72 million. SURMISE COMPANY Comparative Balance Sheets December 31, 2024 and 2023 ($ in millions) 2024 2023 Assets Cash Accounts receivable $ 25 85 $ 32 98 Less: Allowance for uncollectible accounts (19) (3) Prepaid expenses 13 12 Inventory 118 100 Long-term investment 110 75 Land 90 90 Buildings and equipment 368 250 Less: Accumulated depreciation (125) (100) Patent 21 24 $ 686 $ 578 Notes payable Liabilities Accounts payable Accrued liabilities Lease liability Bonds payable Shareholders' Equity $ 15 $ 34 4 16 40 0 110 0 60 120 65 50 261 205 131 $ 686 153 $ 578 Common stock Paid-in capital-excess of par Retained earnings Required: Prepare the statement of cash flows of Surmise Company for the year ended December 31, 2024. Use the indirect method to present cash flows from operating activities because you do not have sufficient information to use the direct method. You will need to make reasonable assumptions concerning the reasons for changes in some account balances. A spreadsheet or T-account analysis will be helpful. (Hint: The right to use a building was acquired with a seven-year lease agreement. Annual lease payments of $8 million are paid at January 1 of each year starting in 2024.) Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign. SURMISE COMPANY Statement of Cash Flows For year ended December 31, 2024 Cash flows from operating activities: Net income Adjustments for noncash effects: Depreciation expense ($ in millions) Changes in operating assets and liabilities: Net cash flows from operating activities Cash flows from investing activities: $ 0 Net cash flows from investing activities Cash flows from financing activities: Net cash flows from financing activities Net increase (decrease) in cash Cash balance, January 1 0 0 Cash balance, December 31 Noncash investing and financing activities: A 0