The comparative balance sheets for 2013 and 2012 are given below for Surmise Company. Net income for 2013 was $50 million.

Required:
Prepare the statement of cash flows of Surmise Company for the year ended December 31, 2013. 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 behelpful.

SURMISE COMPANY Comparative Balance Sheets December 31, 2013 and 2012 (S in millions) 2013 2012 Assets S 45 92 (12) $ 40 96 Accounts receivable Less: Allowance for u Prepaid expenses Inventory Long-term investment ncollectible account 145 80 100 411 (142) 16 $743 130 40 100 300 (120) 17 $604 Buildings and equipment Less: Accumulated depreciation Patent Liabilities Accounts payable Accrued liabilities Notes payable Lease liability Bonds payable Shareholders' Equity Common stock Paid-in capital-excess of par Retained earnings $ 17 $ 32 10 0 0 125 35 65 60 245 212 $743 50 205 182 $604