The comparative balance sheets for 2016 and 2015 are given below for Surmise Company. Net income for 2016 was $52 million.

SURMISE COMPANY Comparative Balance Sheets December 31, 2016 and 2015 ($ in millions)
	2016		2015
Assets
Cash	$	184	$	148
Accounts receivable		75		78
Less: Allowance for uncollectible accounts		(8)		(3)
Prepaid expenses		3		2
Inventory		108		100
Long-term investment		45		20
Land		70		70
Buildings and equipment		280		200
Less: Accumulated depreciation		(94)		(80)
Patent		10		12
	$	673	$	547
Liabilities
Accounts payable	$	8	$	13
Accrued liabilities		(1)		5
Notes payable		20		0
Lease liability		80		0
Bonds payable		50		90
Shareholders Equity
Common stock		55		50
Paid-in capitalexcess of par		247		205
Retained earnings		214		184
	$	673	$	547

Required:

Prepare the statement of cash flows of Surmise Company for the year ended December 31, 2016. Use the indirect method to present cash flows from operating activities because you do not have sufficient information to use the direct method. You will need to make reasonable assumptions concerning the reasons for changes in some account balances. A spreadsheet or T-account analysis will be helpful. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.)

SURMISE COMPANY
Statement of Cash Flows
For year ended December 31, 2016
($ in millions)
Adjustments for noncash effects:
Changes in operating assets and liabilities: