The comparative balance sheets for 2018 and 2017 are given below for Surmise Company. Net income for 2018 was $76 million.

SURMISE COMPANY Comparative Balance Sheets December 31, 2018 and 2017 ($ in millions)
	2018				2017
Assets
Cash	$	22			$	31
Accounts receivable		87				102
Less: Allowance for uncollectible accounts		(23	)			(5	)
Prepaid expenses		18				14
Inventory		129				109
Long-term investment		122				85
Land		94				94
Buildings and equipment		386				260
Less: Accumulated depreciation		(131	)			(104	)
Patent		23				25
	$	727			$	611
Liabilities
Accounts payable	$	17			$	38
Accrued liabilities		1				18
Notes payable		44				0
Lease liability		116				0
Bonds payable		62				126
Shareholders Equity
Common stock		67				50
Paid-in capitalexcess of par		257				205
Retained earnings		163				174
	$	727			$	611

Required: Prepare the statement of cash flows of Surmise Company for the year ended December 31, 2018. 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. (Hint: The right to use a building was acquired with a seven-year lease agreement. Annual lease payments of $10 million are paid at January 1 of each year starting in 2018.) (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, 2018 ($ in millions) Adjustments for noncash effects: Changes in operating assets and liabilities: Noncash investing and financing activities: Noncash investing and financing activities