The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for National Intercable Company. Additional information from NIC?s accounting records is provided also.

Additional information from the accounting records:a. Investment revenue includes National Intercable Company?s $6 million share of the net income of Central Fiber Optics Corporation, an equity method investee.b. A long-term investment in bonds, originally purchased for $30 million, was sold for $35 million.c. Pretax accounting income exceeded taxable income, causing the deferred income tax liability to increase by $3 million.

d. A building that originally cost $60 million, and which was one-fourth depreciated, was destroyed by fire. Some undamaged sections were sold for $3 million.e. The right to use a building was acquired with a seven-year lease agreement; present value of lease payments, $80 million. Annual lease payments of $12 million are paid at Jan. 1 of each year starting in 2021.f. $130 million of bonds were retired at maturity.g. $20 million par value of common stock was sold for $30 million, and $50 million of preferred stock was sold at par.h. Shareholders were paid cash dividends of $30 million.

Required:1. Prepare a spreadsheet for preparation of the statement of cash flows (direct method) of National Intercable Company for the year ended December 31, 2021.2. Prepare the statement of cash flows.

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NATIONAL INTERCABLE COMPANY Comparative Balance Sheets December 31, 2021 and 2020 (S in millions) 2021 2020 Assets $ 57 $ 55 Cash Accounts receivable 181 170 Less: Allowance for uncollectible accounts (8) (6) Prepaid insurance Inventory Long-term investment 12 170 165 66 90 Land 150 150 Buildings and equipment Less: Accumulated depreciation 290 270 (85) (75) Trademark 24 25 $852 $856 Liabilities $ 30 $ 45 Accounts payable Salaries payable Deferred tax liability Lease liability Bonds payable 3 18 15 68 145 275 (22) (25) Less: Discount on bonds Shareholders' Equity Common stock 310 290 Paid-in capital-excess of par 95 85 Preferred stock 50 Retained earnings 155 163 $856 $852 NATIONAL INTERCABLE COMPANY Income Statement For Year Ended December 31, 2021 (S in millions) Revenues Sales revenue $320 15 Investment revenue $ 340 Gain on sale of investments Expenses Cost of goods sold Salaries expense Depreciation expense 125 55 25 Amortization expense Bad debt expense Insurance expense Interest expense Loss on sale of building 13 30 298 42 Income before tax 42 Income tax expense 20 $ 22 Net Income