Below are the comparative balance sheets for 2018 and 2017 for Surmise Company. Net income for 2018 was $70 million.

JOINT COMPANY Comparative balance sheets December 31, 2018 and 2017 ($ in millions)
	2018				2017
Assets
Money	ps	26			ps	32
accounts receivable		84				96
Less: Reserve for bad debts		(19	)			(4	)
Prepaid expenses		14				11
Inventory		132				115
Long-term investment		104				70
Tierra		88				88
buildings and equipment		359				245
Less: Accumulated depreciation		(122	)			(98	)
Patent		20				22
	ps	686			ps	577
Passive
Accounts payable	ps	14			ps	32
Accrued Obligations		3				15
Pay		38				0
lease liability		107				0
Obligations with the public		59				117
Shareholders
Common actions		64				50
Paid-in capital: excess of par		259				205
Retained earnings		142				158
	ps	686			ps	577

Required:
Prepare the statement of cash flows for Surmise Company for the year ended December 31, 2018. Use the indirect method to present cash flows from operating activities because you do not have enough information to use the direct method. You should make reasonable assumptions about the reasons for changes in some account balances. A spreadsheet or T-account analysis will be helpful. (Hint: The right to use a building was acquired with a seven-year lease. Annual lease payments of $7 million are paid on January 1 of each year beginning in 2018.) (Enter your answers in millions (ie, 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.)