The following information applies to the questions displayed below.] The comparative balance sheets for 2021 and 2020 and the income statement for 2021 are given below for Arduous Company. Additional information from Arduous's accounting records is provided also. ARDUOUS COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) 2021 2020 $ 97 226 20 216 Assets Cash Accounts receivable Investment revenue receivable Inventory Prepaid insurance Long-term investment Land Buildings and equipment Less: Accumulated depreciation Patent 29 139 206 22 221 20 204 228 443 (112) 49 $ 1,420 141 166 432 (152) $ 1,226 66 Liabilities Accounts payable Salaries payable Interest payable (bonds) Income tax payable Deferred tax liability Notes payable Lease liability Bonds payable Less: Discount on bonds Shareholders' Equity Common stock Paid-in capital-excess of par Preferred stock Retained earnings Less: Treasury stock 104 231 (38) 307 (44) 446 111 426 101 91 230 304 (43) $ 1,420 $ 1,226 27 ARDUOUS COMPANY Income Statement For Year Ended December 31, 2021 ($ in millions) Revenues and gain: Sales revenue $ 554 Investment revenue Gain on sale of treasury bills - 2 $ 583 Expenses and loss: Cost of goods sold Salaries expense Depreciation expense Amortization expense Insurance expense Interest expense Loss on sale of equipment Income tax expense 52 437 Net income $ 146 Additional information from the accounting records: a. Investment revenue includes Arduous Company's $22 million share of the net income of Demur Company, an equity method investee. b. Treasury bills were sold during 2021 at a gain of $2 million. Arduous Company classifies its investments in Treasury bills as cash equivalents. c. Equipment originally costing $102 million that was one-half depreciated was rendered unusable by a flood. Most major components of the equipment were unharmed and were sold for $22 million. d. Temporary differences between pretax accounting income and taxable income caused the deferred tax liability to increase by $19 million. e. The preferred stock of Tory Corporation was purchased for $41 million as a long-term investment. f. Land costing $62 million was acquired by issuing $31 million cash and a 12%, four-year, $31 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, $113 million. Annual lease payments of $9 million are paid at the beginning of each year starting January 1, 2021. h. $76 million of bonds were retired at maturity. i. In February, Arduous issued dividend (4 million shares). The market price of the $5.00 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 $43 million. Required: Prepare the T-accounts for Arduous Company. (Enter your answers in thousands. (i.e., 10,000 should be entered as 10).) Cash Beg. Bal. Operating Activities: Investing Activities: Financing Activities: End. Bal. ARDUOUS COMPANY Statement of Cash Flows For year ended December 31, 2021 ($ in millions) Cash flows from operating activities: Cash inflows: Cash outflows: $ 0 Net cash flows from operating activities Cash flows from investing activities: Net cash flows from investing activities Cash flows from financing activities: Net cash flows from financing activities Net cash flows from investing activities Cash flows from financing activities: Net cash flows from financing activities Net increase in cash Cash balance, January 1 Cash balance, December 31 Noncash investing and financing activities