The comparative balance sheets for $2024$ and $2023$ and the statement of income for $2024$ are given below for National Intercable Company. Additional information from NIC$$s accounting records is provided also.

NATIONAL INTERCABLE COMPANY

Comparative Balance Sheets

December $31,2024$ and $2023$

$($$ in millions$)$

$20242023$

Assets

Cash $ $76$ $ $70$

Accounts receivable $207200$

Less: Allowance for uncollectible accounts $(8)(6)$

Prepaid insurance $912$

Inventory $188180$

Long$-$term investment $3050$

Land $180180$

Buildings and equipment $252220$

Less: Accumulated depreciation $(73)(60)$

Trademark $2730$

$ $888$ $ $876$

Liabilities

Accounts payable $ $33$ $ $44$

Salaries payable $56$

Deferred tax liability $1412$

Lease liability $530$

Bonds payable $140260$

Less: Discount on bonds $(20)(22)$

Shareholders' Equity

Common stock $240220$

Paid$-$in capital$$excess of par $9060$

Preferred stock $400$

Retained earnings $293296$

$ $888$ $ $876$

NATIONAL INTERCABLE COMPANY

Income Statement

For Year Ended December $31,2024$

$($$ in millions$)$

Revenues

Sales revenue $ $290$

Investment revenue $12$

Gain on sale of investments $4$ $ $306$

Expenses

Cost of goods sold $120$

Salaries expense $54$

Depreciation expense $20$

Amortization expense $3$

Bad debt expense $8$

Insurance expense $14$

Interest expense $30$

Loss on sale of building $19268$

Income before tax $38$

Income tax expense $27$

Net income $ $11$

Additional information from the accounting records:

Investment revenue includes National Intercable Company's $$4$ million share of the net income of Central Fiber Optics Corporation, an equity method investee.

A long$-$term investment in bonds, originally purchased for $$24$ million, was sold for $$28$ million.

Pretax accounting income exceeded taxable income, causing the deferred income tax liability to increase by $$2$ million.

A building that originally cost $$28$ million, and which was one$-$fourth depreciated, was destroyed by fire. Some undamaged sections were sold for $$2$ million.

The right to use a building was acquired with a seven$-$year lease agreement; present value of lease payments, $$60$ million. Annual lease payments of $$7$ million are paid on Jan. $1$ of each year starting in $2024.$

$$120$ million of bonds were retired at maturity.

$$20$ million par value of common stock was sold for $$50$ million, and $$40$ million of preferred stock was sold at par.

Shareholders were paid cash dividends of $$14$ million.

Required:

$2.$ Prepare the statement of cash flows. Present cash flows from operating activities by the direct method.