Required: Prepare the statement of cash flows for Arduous Company

, ,Required:, , ,Prepare the statement of cash flows for Arduous Company using the indirect method. , , ,The comparative balance sheets for 2013 and 2012 and the income statement for 2013 are given below for Arduous Company. Additional information from Arduous’s accounting records is provided also., , ,ARDUOUS COMPANY,Comparative Balance Sheets,December 31, 2013 and 2012,($ in millions), , , ,2013, ,2012, ,  Assets, , , , , , , , , ,  Cash, ,$, , 116   , ,$, ,81   , ,  Accounts receivable, , , ,190   , , , ,194   , ,  Investment revenue receivable, , , ,6   , , , ,4   , ,  Inventory, , , ,205   , , , ,200   , ,  Prepaid insurance, , , ,4   , , , ,8   , ,  Long-term investment, , , ,156   , , , ,125   , ,  Land, , , ,196   , , , ,150   , ,  Buildings and equipment, , , ,412   , , , ,400   , ,      Less: Accumulated depreciation, , , ,(97)  , , , ,(120)  , ,  Patent, , , ,30   , , , ,32   , , , , , ,$, ,1,218   , ,$, ,1,074   , , , ,  Liabilities, , , , , , , , , ,  Accounts payable, ,$, ,50   , ,$, ,65   , ,  Salaries payable, , , ,6   , , , ,11   , ,  Bond interest payable, , , ,8   , , , ,4   , ,  Income tax payable, , , ,12   , , , ,14   , ,  Deferred income tax liability, , , ,11   , , , ,8   , ,  Notes payable, , , ,23   , , , ,0   , ,  Lease liability, , , ,82   , , , ,0   , ,  Bonds payable, , , ,215   , , , ,275   , ,     Less: Discount on bonds, , , ,(22)  , , , ,(25)  , ,  Shareholders’ Equity, , , , , , , , , ,  Common stock, , , ,430   , , , ,410   , ,  Paid-in capital—excess of par, , , ,95   , , , ,85   , ,  Preferred stock, , , ,75   , , , ,0   , ,  Retained earnings, , , ,242   , , , ,227   , ,     Less: Treasury stock, , , ,(9)  , , , ,0   , , , , , ,$, ,1,218   , ,$, ,1,074   , , , ,ARDUOUS COMPANY,Income Statement,For Year Ended December 31, 2013,($ in millions), , Revenues, , , , , , , , , , , , , ,  Sales revenue, , , , , ,$, ,410   , , , , , , ,  Investment revenue, , , , , , , ,11   , , , , , ,  Gain on sale of treasury bills, , , , , , , ,2   , ,$, ,423   , , , , , , , , , , , ,  Expenses, , , , , , , , , , , , , ,  Cost of goods sold, , , , , , , ,180   , , , , , ,  Salaries expense, , , , , , , ,73   , , , , , ,  Depreciation expense, , , , , , , ,12   , , , , , ,  Patent amortization expense, , , , , , , ,2   , , , , , ,  Insurance expense, , , , , , , ,7   , , , , , ,  Bond interest expense, , , , , , , ,28   , , , , , ,     Extraordinary loss (flood), ,$, ,18   , , , , , , , , , ,     Less: Tax savings, , , ,(9)  , , , ,9   , , , , , , , , , , , , , , , ,  Income tax expense, , , , , , , ,45   , , , ,356   , , , , , , , ,  Net income, ,$, ,67   , ,Additional information from the accounting records:, ,a., ,During 2011, $6 million of customer accounts were written off as uncollectible., ,b., , ,Investment revenue includes Arduous Company’s $6 million share of the net income of Demur Company, an equity method investee., , ,c., , ,Treasury bills were sold during 2013 at a gain of $2 million. Arduous Company classifies its investments in Treasury bills as cash equivalents., , ,d., , ,A machine originally costing $70 million that was one-half depreciated was rendered unusable by a rare flood. Most major components of the machine were unharmed and were sold for $17 million., , ,e., , ,Temporary differences between pretax accounting income and taxable income caused the deferred income tax liability to increase by $3 million., , ,f., , ,The preferred stock of Tory Corporation was purchased for $25 million as a long-term investment., , ,g., , ,Land costing $46 million was acquired by issuing $23 million cash and a 15%, four-year, $23 million note payable to the seller., , ,h., , ,A building was acquired by a 15-year capital lease; present value of lease payments, $82 million., , ,i., ,$60 million of bonds were retired at maturity., ,j., , ,In February, Arduous issued a 4% stock dividend (4 million shares). The market price of the $5 par value common stock was $7.50 per share at that time. Also the company paid a cash dividend., , ,k., ,In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $9 million., ,Required:, , ,Prepare the statement of cash flows for Arduous Company using the indirect method. , , ,