The comparative balance sheets for 2024 and 2023 and the income statement for 2024 are given...

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The comparative balance sheets for 2024 and 2023 and the income statement for 2024 are given below for Arduous Company. Additional information from Arduous's accounting records is provided also. ARDUOUS COMPANY Comparative Balance Sheets December 31, 2024 and 2023 ($ in millions) 2024 2023 Assets Cash $ 126 $ 90 Accounts receivable 199 212 Investment revenue receivable Inventory Prepaid insurance Long-term investment Land Buildings and equipment Less: Accumulated depreciation 16 13 214 209 14 21 184 134 214 159 421 418 (107) (138) Patent Liabilities Accounts payable Salaries payable 41 44 $ 1,322 $ 1,162 $ 59 $ 83 16. 21 Interest payable (bonds) 18 13 Income tax payable Deferred tax liability 21 23 29 17 Notes payable Lease liability 28 0 83 0 Bonds payable 224 293 Less: Discount on bonds (31) (34) Shareholders' Equity Common stock 457 419 Paid-in capital-excess of par 113 94 Preferred stock 84 0 Retained earnings 239 233 Less: Treasury stock (18) 0 $ 1,322 $ 1,162 ARDUOUS COMPANY Income Statement For Year Ended December 31, 2024 ($ in millions) Revenues and gain: Sales revenue Investment revenue Gain on sale of Treasury bills 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 Net income $ 487 21 3 $ 511 189 82 13 3 16 37 26 45 411 $ 100 Additional information from the accounting records: a. Investment revenue includes Arduous Company's $16 million share of the net income of Demur Company, an equity method investee. b. Treasury bills were sold during 2024 at a gain of $3 million. Arduous Company classifies its investments in Treasury bills as cash equivalents. c. Equipment originally costing $88 million that was one-half depreciated was rendered unusable by a flood. Most major components of the equipment were unharmed and were sold for $18 million. d. Temporary differences between pretax accounting income and taxable income caused the deferred tax liability to increase by $12 million. e. The preferred stock of Tory Corporation was purchased for $34 million as a long-term investment. f. Land costing $55 million was acquired by issuing $27 million cash and a 12%, four-year, $28 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, $91 million. Annual lease payments of $8 million are paid at the beginning of each year starting January 1, 2024. h. $69 million of bonds were retired at maturity. 1. In February, Arduous issued a stock dividend (7.6 million shares). The market price of the $5 par value common stock was $7.50 per share at that time. Required: Prepare the statement of cash flows of Arduous Company for the year ended December 31, 2024. Present cash flows from operating activities by the direct method. Note: Do not round your intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign. ARDUOUS COMPANY Statement of Cash Flows For year ended December 31, 2024 ($ in millions) Cash flows from operating activities: Cash inflows: Cash outflows. Net cash flows from operating activities Cash flows from investing activities: Net cash flows from investing activities 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 Cash balance, December 31 Noncash investing and financing activities: The comparative balance sheets for 2024 and 2023 and the income statement for 2024 are given below for Arduous Company. Additional information from Arduous's accounting records is provided also. ARDUOUS COMPANY Comparative Balance Sheets December 31, 2024 and 2023 ($ in millions) 2024 2023 Assets Cash $ 126 $ 90 Accounts receivable 199 212 Investment revenue receivable Inventory Prepaid insurance Long-term investment Land Buildings and equipment Less: Accumulated depreciation 16 13 214 209 14 21 184 134 214 159 421 418 (107) (138) Patent Liabilities Accounts payable Salaries payable 41 44 $ 1,322 $ 1,162 $ 59 $ 83 16. 21 Interest payable (bonds) 18 13 Income tax payable Deferred tax liability 21 23 29 17 Notes payable Lease liability 28 0 83 0 Bonds payable 224 293 Less: Discount on bonds (31) (34) Shareholders' Equity Common stock 457 419 Paid-in capital-excess of par 113 94 Preferred stock 84 0 Retained earnings 239 233 Less: Treasury stock (18) 0 $ 1,322 $ 1,162 ARDUOUS COMPANY Income Statement For Year Ended December 31, 2024 ($ in millions) Revenues and gain: Sales revenue Investment revenue Gain on sale of Treasury bills 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 Net income $ 487 21 3 $ 511 189 82 13 3 16 37 26 45 411 $ 100 Additional information from the accounting records: a. Investment revenue includes Arduous Company's $16 million share of the net income of Demur Company, an equity method investee. b. Treasury bills were sold during 2024 at a gain of $3 million. Arduous Company classifies its investments in Treasury bills as cash equivalents. c. Equipment originally costing $88 million that was one-half depreciated was rendered unusable by a flood. Most major components of the equipment were unharmed and were sold for $18 million. d. Temporary differences between pretax accounting income and taxable income caused the deferred tax liability to increase by $12 million. e. The preferred stock of Tory Corporation was purchased for $34 million as a long-term investment. f. Land costing $55 million was acquired by issuing $27 million cash and a 12%, four-year, $28 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, $91 million. Annual lease payments of $8 million are paid at the beginning of each year starting January 1, 2024. h. $69 million of bonds were retired at maturity. 1. In February, Arduous issued a stock dividend (7.6 million shares). The market price of the $5 par value common stock was $7.50 per share at that time. Required: Prepare the statement of cash flows of Arduous Company for the year ended December 31, 2024. Present cash flows from operating activities by the direct method. Note: Do not round your intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign. ARDUOUS COMPANY Statement of Cash Flows For year ended December 31, 2024 ($ in millions) Cash flows from operating activities: Cash inflows: Cash outflows. Net cash flows from operating activities Cash flows from investing activities: Net cash flows from investing activities 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 Cash balance, December 31 Noncash investing and financing activities: