The comparative balance sheets for 2013 and 2012 and the statement of income for 2013 are given below for National Intercable Company. Additional information from NIC’s accounting records is provided also.

Additional information from the accounting records:
a. Investment revenue includes National Intercable Company’s $6 million share of the net income of Central Fiber Optics Corporation, an equity method investee.
b. A long-term investment in bonds, originally purchased for $30 million, was sold for $35 million.
c. Pretax accounting income exceeded taxable income causing the deferred income tax liability to increase by $3 million.
d. A building that originally cost $60 million, and which was one-fourth depreciated, was destroyed by a tornado. Some undamaged parts were sold for $3 million.
e. The right to use a building was acquired with a seven-year lease agreement; present value of lease payments, $80 million.
f. $130 million of bonds were retired at maturity.
g. $20 million par value of common stock was sold for $30 million, and $50 million of preferred stock was sold at par.
h. Shareholders were paid cash dividends of $30 million.

Required:
1. Prepare a spreadsheet for preparation of the statement of cash flows (direct method) of National Intercable Company for the year ended December 31, 2013.
2. Prepare the statement of cash flows. (A reconciliation schedule is notrequired.)

NATIONAL INTERCABLE COMPANY Comparative Balance Sheets December 31, 2013 and 2012 ($ in millions) 2013 2012 Cash Accounts receivable Prepaid insurance Inventory Long-term investment Land Buildings and equipmemt $ 72 173 S 55 164 12 165 90 150 270 (75) 25 $856 170 150 290 (85) 24 $867 Less: Accumulated depreciation Trademark Liabilities Accounts payable Salaries payable Deferred income tax liability Lease liability Bonds payable $ 30 18 80 145 (22) S 45 15 275 Less: Discount on bonds Shareholders' Equity Common stock 310 95 50 158 $867 290 85 Paid-in capital-excess of par Preferred stock Retained earnings 163 $856 NATIONAL INTERCABLE COMPANY Income Statement For Year Ended December 31, 2013 ($ in millions) Revenues Sales revenue Investment revenue Gain on sale of investments $320 15 S 340 Expenses Cost of goods sold Salaries expense Depreciation expense Trademark amortization expense Insurance expense Bond interest expense Income before tax and extraordinary items Income tax expense Income before extraordinary items Extraordinary loss (tornado) Less: Tax savings Net income 125 25 20 30 (256) 84 (38) 46 42 (21) (21) $ 25