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The comparative balance sheets for $2021$ and $2020$ and the income statement for $2021$ are given below for Arduous Company. Additional information from Arduous$$s accounting records is provided also.

ARDUOUS COMPANY

Comparative Balance Sheets

December $31,2021$ and $2020$

$($$ in millions$)$

$20212020$

Assets

Cash $ $137$ $ $95$

Accounts receivable $204222$

Investment revenue receivable $2118$

Inventory $222214$

Prepaid insurance $1926$

Long$-$term investment $199139$

Land $224164$

Buildings and equipment $426428$

Less: Accumulated depreciation $(110)(148)$

Patent $4649$

$ $1,388$ $ $1,207$

Liabilities

Accounts payable $ $64$ $ $93$

Salaries payable $2132$

Interest payable $($bonds$)2318$

Income tax payable $2630$

Deferred tax liability $3922$

Notes payable $300$

Lease liability $890$

Bonds payable $229303$

Less: Discount on bonds $(36)(42)$

Shareholders$$ Equity

Common stock $472424$

Paid$-$in capital$$excess of par $12399$

Preferred stock $890$

Retained earnings $242228$

Less: Treasury stock $(23)0$

$ $1,388$ $ $1,207$

ARDUOUS COMPANY

Income Statement

For Year Ended December $31,2021$

$($$ in millions$)$

Revenues and gain:

Sales revenue $ $550$

Investment revenue $26$

Gain on sale of Treasury bills $3$ $ $579$

Expenses and loss:

Cost of goods sold $194$

Salaries expense $87$

Depreciation expense $11$

Amortization expense $3$

Insurance expense $21$

Interest expense $42$

Loss on sale of equipment $31$

Income tax expense $50439$

Net income $ $140$

Additional information from the accounting records:

Investment revenue includes Arduous Company$$s $$21$ million share of the net income of Demur Company, an equity method investee.

Treasury bills were sold during $2021$ at a gain of $$3$ million. Arduous Company classifies its investments in Treasury bills as cash equivalents.

Equipment originally costing $$98$ million that was one$-$half depreciated was rendered unusable by a flood. Most major components of the equipment were unharmed and were sold for $$18$ million.

Temporary differences between pretax accounting income and taxable income caused the deferred tax liability to increase by $$17$ million.

The preferred stock of Tory Corporation was purchased for $$39$ million as a long$-$term investment.

Land costing $$60$ million was acquired by issuing $$30$ million cash and a $10\%,$ four$-$year, $$30$ million note payable to the seller.

The right to use a building was acquired with a $15-$year lease agreement; present value of lease payments, $$96$ million. Annual lease payments of $$7$ million are paid at the beginning of each year starting January $1,2021.$

$$74$ million of bonds were retired at maturity.

In February, Arduous issued dividend $(9\mathrm{.}6$ million shares$).$ The market price of the $$5$ par value common stock was $$7\mathrm{.}50$ per share at that time.

In April, $1$ million shares of common stock were repurchased as treasury stock at a cost of $$23\mathrm{.}00$ million.

Required:

Prepare the statement of cash flows of Arduous Company for the year ended December $31,2021.$ Present cash flows from operating activities by the direct method. $($Do not round your intermediate calculations. 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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