Problem 21-18 Statement of cash flows; indirect method [LO21-4, 21-8] The comparative balance sheets for 2018 and 2017 and the income statement for 2018 are given below for Arduous Company Additional information from Arduous's accounting records is provided also. 2017 $ 91 214 14 210 1 I ONCO PEPO n - L C 135 160 420 (140) 45 $1,171 ARDUOUS COMPANY Comparative Balance Sheets December 31, 2018 and 2017 ($ in millions) 2018 Assets Cash $ 136 Accounts receivable Investment revenue receivable Inventory Prepaid insurance Long-term investment Land Buildings and equipment Less: Accumulated depreciation Patent $1,344 Liabilities Accounts payable Salaries payable Bond interest payable Income tax payable Deferred income tax liability Notes payable Lease liability Bonds payable Less: Discount on bonds Shareholders' Equity Common stock 460 Paid-in capital-excess of par 115 Preferred stock Retained earnings 242 Less: Treasury stock (19) $1,344 85 100 UN CON 295 (39) m 420 95 225 $1,171 ARDUOUS COMPANY Income Statement For Year Ended December 31, 2018 ($ in millions) Revenues and gain: Sales revenue $ 494 Investment revenue 20 Gain on sale of treasury bills 1 $ 515 Expenses and loss: Cost of goods sold Salaries expense Depreciation expense Patent amortization expense Insurance expense Bond interest expense Loss on machine damage Income tax expense 0 0 os in cow Net income Additional information from the accounting records: a. Investment revenue includes Arduous Company's $15 million share of the net income of Demur Company, an equity method investee. b. Treasury bills were sold during 2018 at a gain of $1 million. Arduous Company classifies its investments in Treasury bills as cash equivalents. C. A machine originally costing $90 million that was one-half depreciated was rendered unusable by a flood. Most major components of the machine were unharmed and were sold for $20 million. d. Temporary differences between pretax accounting income and taxable income caused the deferred income tax liability to increase by $13 million. e. The preferred stock of Tory Corporation was purchased for $35 million as a long-term investment. f. Land costing $56 million was acquired by issuing $28 million cash and a 10%, 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, $92 million. Annual lease payments of $6 million are paid at the beginning of each year starting January 1, 2018 h. $70 million of bonds were retired at maturity. i. In February, Arduous issued a stock dividend (8.0 million shares). The market price of the $5 par value common stock was $7.50 per share at that time. j. In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $19 million. Required: Prepare the statement of cash flows for Arduous Company using the indirect method. (Amounts to be deducted should be indicated with a minus sign. Do not round your intermediate calculations. Enter your answers in millions (i.e., 10,000,000 should be entered as 10.).)