Additional information from the accounting records:
a) Investment revenue includes Arduous Company’s $16 million share of the net income of Demur Company, an equity method investee.
b) Treasury bills were sold during 2018 at a gain of $5 million. Arduous Company classifies its investments in Treasury bills as cash equivalents.
c) A machine originally costing $84 million that was one-half depreciated was rendered unusable by a flood. Most major components of the machine were unharmed and were sold for $12 million.
d) Temporary differences between pretax accounting income and taxable income caused the deferred income tax liability to increase by $10 million.
e) The preferred stock of Tory Corporation was purchased for $32 million as a long-term investment.
f) Land costing $53 million was acquired by issuing $27 million cash and a 15%, four-year, $26 million note payable to the seller.
g) The right to use a building was acquired with a 15-year lease agreement; present value of lease payments, $89 million. Annual lease payments of $9 million are paid at the beginning of each year starting January 1, 2018.
h) $67 million of bonds were retired at maturity.
i) In February, Arduous issued a stock dividend (6.8 million shares). The market price of the $5 par value common stock was $7.50 per share at that time.
j) In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $16 million.
1. Prepare the statement of cash flows for the company using the indirect method.
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