The comparative balance sheets for 2024 and 2023 are given below for Surmise Company. Net income for 2024 was $56 million.

SURMISE COMPANY
Comparative Balance Sheets
December 31, 2024 and 2023
($ in millions)
	2024	2023
Assets
Cash	$ 43	$ 50
Accounts receivable	77	82
Less: Allowance for uncollectible accounts	(12)	(5)
Prepaid expenses	8	4
Inventory	180	170
Long-term investment	57	30
Land	74	74
Buildings and equipment	306	210
Less: Accumulated depreciation	(100)	(84)
Patent	12	13
	$ 645	$ 544
Liabilities
Accounts payable	$ 6	$ 17
Accrued liabilities	4	7
Notes payable	24	0
Lease liability	86	0
Bonds payable	52	96
Shareholders Equity
Common stock	57	50
Paid-in capitalexcess of par	245	205
Retained earnings	171	169
	$ 645	$ 544

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 $10 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.