The comparative balance sheets for 2018 and 2017 and the income statement for 2018 are given below for Arduous Company. Additional information from Arduous's accounting records is provided also.

Additional information from the accounting records:
a. Investment revenue includes Arduous Company's $6 million share of the net income of Demur Company, an equity method investee.
b. Treasury bills were sold during 2018 at a gain of $2 million. Arduous Company classifies its investments in Treasury bills as cash equivalents.
c. A machine originally costing $70 million that was one-half depreciated was rendered unusable by a flood.
Most major components of the machine were unharmed and were sold for $17 million.
d. Temporary differences between pretax accounting income and taxable income caused the deferred income 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, 2018.
h. $60 million of bonds were retired at maturity.
i. In February, Arduous issued a 4% 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:
Prepare the statement of cash flows of Arduous Company for the year ended December 31, 2018. Present cash flows from operating activities by the direct method. (A reconciliation schedule is not required.)

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ARDUOUS COMPANY Comparative Balance Sheets December 31, 2018 and 2017 ($ in millions) 2018 $ 81 194 Cash Accounts receivable Investment revenue receivable Inventory Prepaid insurance Long-term investment Land Buildings and equipment $ 109 190 205 200 156 196 412 (97) 30 $1,211 125 150 400 (120) 32 $1,074 Less: Accumulated depreciation $ 50 $ 65 Salaries payable Bond interest payable 12 14 Deferred income tax liability Notes payable 23 75 215 (22) Bonds payable 275 (25) Discount on bonds Shareholders' Equity Common stock Paid-in capital-excess of par Preferred stock 430 95 75 242 410 85 227 Less: Treasury stock $1,211 $1,074 ARDUOUS COMPANY Income Statement For Year Ended December 31, 2018 ($ in millions) Revenues and gain: Sales revenue Investment revenue Gain on sale of Treasury bills Expenses and loss: Cost of goods sold Salariesexpense Depreciation expense Patent amortization expense Insurance expense Bond interest expense Loss on machine damage Income tax expense Net income $410 2 $423 180 73 12 2 7 28 18 36 356 $ 67