Prepare statement of cash flows using the direct and indirect method.

UNITED BRANDS CORPORATION Comparative Balance Sheet December 31, 2016 and 2015 ($ in millions)
Assets	2016	2015
Cash	$29	$20
Accounts Receivable	32	30
Short-term Investments	12	0
Inventory	46	50
Prepaid Insurance	3	6
Land	80	60
Building and Equipment	81	75
Less: Accumulated Depreciation	(16)	(20)
	$267	$221
Liabilities
Accounts Payable	$26	$20
Salaries Payable	3	1
Income Tax Payable	6	8
Notes Payable	20	0
Bonds Payable	35	50
Less: Discount on bonds	(1)	(3)
Shareholders Equity
Common Stock	130	100
Paid-in Capital	29	20
Retained Earnings	19	25
	$267	$221
Income Statement
Sales Revenue	$100
Cost of Goods Sold	60
Gross Profit		40
Operating Expenses:
Salaries Expense	13
Depreciation Expense	3
Bond Interest Expense	5
Insurance Expense	7
Total Operating Expenses		28
Other Income (Expenses)
Investment Revenue	3
Gain on Sale of Land	8
Loss on Sale of Equipment	(2)
Total other income (expenses)		9
Income before income taxes		21
Income tax expense		9
Net Income		12

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 share) 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.