The comparative balance sheets for 2024 and 2023 and the statement of...

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Accounting

The comparative balance sheets for 2024 and 2023 and the statement of income for 2024 are given below for National Intercable Company. Additional information from NICs accounting records is provided also. Statement of Cash Flows
For the year ended December 31,2024
($ in millions)
\table[[Cash flows from operating activities:,,],[Cash inflows:,,],[From customers,(,,],[From investment revenue,(V),,],[Cash outflows:,,],[To suppliers of goods,(V),,],[To employees,(,,],[For insurance expense,2,,],[For interest expense,(,,],[For income taxes,(,,],[Net cash flows from operating activities,,,$],[Cash flows from investing activities:,,],[Sale of long-term investment,(,36,],[Sale of building,(,3vv,],[Net cash flows from investing activities,,,39],[Cash flows from financing activities:,,],[Sale of common stock,(,30,],[Sale of preferred stock,2,64vv,],[Retirement of bonds payable,(V),(144)vv,],[Payment of dividends,(V),(30)vv,],[Payment on lease liability,(,,],[Net cash flows from financing activities,,,(80)],[Net increase (decrease) in cash,,,(41)],[Cash balance, January 1,,,69 V],[Cash balance, December 31,,,28],[Noncash investing and financing activities:,,],[Acquired buildings and equipment,2,,80vv]]
NATIONAL INTERCABLE COMPANY
Comparative Balance Sheets
December 31,2024 and 2023
($ in millions)
20242023
Assets
Cash $ 254 $ 69
Accounts receivable 209184
Less: Allowance for uncollectible accounts (8)(6)
Prepaid insurance 2126
Inventory 198179
Long-term investment 80104
Land 164164
Right-of-use assetbuilding 700
Equipment 224340
Less: Accumulated depreciation (99)(89)
Trademark 3839
$ 1,151 $ 1,010
Liabilities
Accounts payable $ 44 $ 73
Salaries payable 1722
Accrued interest payable 40
Deferred tax liability 3229
Lease liability 680
Bonds payable 159303
Less: Discount on bonds (36)(39)
Shareholders' Equity
Common stock 328308
Paid-in capitalexcess of par 10999
Preferred stock 640
Retained earnings 362215
$ 1,151 $ 1,010
NATIONAL INTERCABLE COMPANY
Income Statement
For Year Ended December 31,2024
($ in millions)
Revenues
Sales revenue $ 614
Investment revenue 29
Gain on sale of investments 6 $ 649
Expenses
Cost of goods sold 139
Salaries expense 69
Depreciation expense 39
Amortization expense-trademark 1
Amortization expense-ROU asset 10
Bad debt expense 21
Insurance expense 27
Accrued interest expense-lease 18
Interest expense 44
Loss on sale of building 84452
Income before tax 197
Income tax expense 20
Net income $ 177
Additional information from the accounting records:
Investment revenue includes National Intercable Company's $6 million share of the net income of Central Fiber Optics Corporation, an equity method investee.
A long-term investment in bonds, originally purchased for $30 million, was sold for $36 million.
Pretax accounting income exceeded taxable income, causing the deferred income tax liability to increase by $3 million.
Equipment that originally cost $116 million, and which was one-fourth depreciated, was destroyed by fire. Some undamaged sections were sold for $3 million.
The right to use a building was acquired on January 1,2024, with an eight-year finance agreement; present value of lease payments, $80 million. Annual lease payments of $12 million are paid on Jan. 1 of each year starting in 2024.
$144 million of bonds were retired at maturity.
$20 million par value of common stock was sold for $30 million, and $64 million of preferred stock was sold at par.
Shareholders were paid cash dividends of $30 million.
Required:
2. Prepare the statement of cash flows. Present cash flows from operating activities by the direct method.
Note: 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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