The comparative balance sheets for 2016 and 2015 and the income statement for 2016 are given below for Arduous Company. Additional information from Arduouss accounting records is provided also.

ARDUOUS COMPANY Comparative Balance Sheets December 31, 2016 and 2015 ($ in millions)
	2016		2015
Assets
Cash	$	150	$	98
Accounts receivable		207		228
Investment revenue receivable		23		21
Inventory		223		217
Prepaid insurance		21		30
Long-term investment		207		142
Land		230		167
Buildings and equipment		429		434
Less: Accumulated depreciation		(113)		(154)
Patent		47		50
	$	1,424	$	1,233
Liabilities
Accounts payable	$	67	$	99
Salaries payable		23		35
Bond interest payable		25		21
Income tax payable		29		34
Deferred income tax liability		45		25
Notes payable		31		0
Lease liability		99		0
Bonds payable		232		309
Less: Discount on bonds		(39)		(42)
Shareholders Equity
Common stock		463		427
Paid-in capitalexcess of par		117		102
Preferred stock		92		0
Retained earnings		266		223
Less: Treasury stock		(26)		0
	$	1,424	$	1,233

ARDUOUS COMPANY Income Statement For Year Ended December 31, 2016 ($ in millions)
Revenues and gain:
Sales revenue	$	575
Investment revenue		29
Gain on sale of treasury bills		2		$	606
Expenses and loss:
Cost of goods sold		197
Salaries expense		90
Depreciation expense		11
Patent amortization expense		2
Insurance expense		24
Bond interest expense		45
Loss on machine damage		28
Income tax expense		53			450
Net income				$	156

Additional information from the accounting records:
a.	Investment revenue includes Arduous Companys $23 million share of the net income of Demur Company, an equity method investee.
b.	Treasury bills were sold during 2016 at a gain of $2 million. Arduous Company classifies its investments in Treasury bills as cash equivalents.
c.	A machine originally costing $104 million that was one-half depreciated was rendered unusable by a flood. Most major components of the machine were unharmed and were sold for $24 million.
d.	Temporary differences between pretax accounting income and taxable income caused the deferred income tax liability to increase by $20 million.
e.	The preferred stock of Tory Corporation was purchased for $42 million as a long-term investment.
f.	Land costing $63 million was acquired by issuing $32 million cash and a 15%, four-year, $31 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, $99 million.
h.	$77 million of bonds were retired at maturity.
i.	In February, Arduous issued a 6% stock dividend (3 million shares). The market price of the $6 par value common stock was $8.50 per share at that time.
j.	In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $26 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.).)

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 (.e., 10,000,000 should be entered as 10.).) Answer is not complete. ARDUOUS COMPANY Statement of Cash Flows For year ended December 31, 2016 (S in millions) Cash flows from operating activities Net income Adjustments for noncash effects 156 Depreciation expense Patent amortization expense Loss on machine damage Amortization of discount 28 Changes in operating assets and liabilties Increase in investment due to equity method income Decrease in accounts receivable Increase in investment revenue recelvable Increase in inventory Decrease in prepaid insurance Decrease in accounts payable Decrease in salaries payable Increase in interest payable (23) 21 2) C (32) (12) Decrease in income tax payable Increase in deferred tax liability 20 Net cash ows from operating activities 174 Cash flows from investing activities Purchase of land cash portion Purchase of long-term investment Sale of machine components (42) 24 Net cash ows from investing activwties (18) Cash flows from financing activities Retirement of bonds payable Sale of preferred stock Purchase of treasury stock Payment of cash dividends 77) 92 (26) Net cash tows from financing activities Net increase in cash 52 Cash balance, January 1 Cash balance, December 31 52 Noncash investing and financing activities: Acquired building with lease Acquired land with cash and note 63