The comparative balance sheets for 2021 and 2020 are given below for Surmise Company. Net income for 2021 was $58 million.

SURMISE COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions)
	2021				2020
Assets
Cash	$	90			$	98
Accounts receivable		78				84
Less: Allowance for uncollectible accounts		(15	)			(6	)
Prepaid expenses		10				5
Inventory		121				110
Long-term investment		63				35
Land		76				76
Buildings and equipment		311				215
Less: Accumulated depreciation		(103	)			(86	)
Patent		13				15
	$	644			$	546
Liabilities
Accounts payable	$	7			$	19
Accrued liabilities		2				8
Notes payable		26				0
Lease liability		89				0
Bonds payable		53				99
Shareholders Equity
Common stock		58				50
Paid-in capitalexcess of par		247				205
Retained earnings		162				165
	$	644			$	546

Required: Prepare the statement of cash flows of Surmise Company for the year ended December 31, 2021. 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 $7 million are paid at January 1 of each year starting in 2021.) (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.)

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SURMISE COMPANY Statement of Cash Flows For year ended December 31, 2021 (\$ in millions) Cash flows from operating activities: Net income Adjustments for noncash effects