Prepare statement of cash flows using the direct and indirect method.
UNITED BRANDS CORPORATION
Comparative Balance Sheet
December 31, 2016 and 2015
($ in millions)

Additional Information
1. Company land, purchased in a previous year for $10 million, was sold.
2. Equipment that originally cost $14 million and which was one-half depreciation was sold.
3. The common shares of Mazuma C. were purchased for $12 million as a short-term investment.
4. Property was purchased for $30 million cash for use as a parking lot.
5. On December 30, 2016, new equipment was acquired by issuing a 12%, five-year, $20 million note payable to seller.
6. On January 1, 2016, $15 million of bonds (issued 20 years ago at their face amount) was retired at maturity.
7. The increase in common stock account is atributable to the issuance of a 10% stock dividend (1 million shares) and the subsequent sale of 2 million shares of common stock. The market price of the $10 par value common stock was $13 per share on the dates of both transactions.

Assets 2016 2015 $20 Cash $29 30 Accounts Receivable 32 Short-term Investments 12 Inventory 46 50 Prepaid Insurance Land 80 60 Building and Equipment 81 75 Less: Accumulated Depreciation (16) (20) $221 $267 3. Liabilities Accounts Payable $26 $20 Salaries Payable 1 Income Tax Payable Notes Payable 20 Bonds Payable 35 50 Less: Discount on bonds (1) (3) Shareholder's Equity Common Stock 130 100 Paid-in Capital 29 20 Retained Eamings 19 25 $267 $221 3.