The income statement and a schedule reconciling cash flows from operating activities to net income are provided
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Prepare the cash flows from operating activities section of the statement of cash flows (direct method).
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MACROSOFT CORPORATION Income Statement For the Year Ended December 31, 2018 (S in millions) Reconciliation of Net Income to Net Cash Flows from Operating Activities Revenues and gains Net income $ 62 $310 Sales Gain on sale of cash equivalents Gain on sale of investments Adjustments for noncash effects: 10 Patent amortization expense Loss on sale of land Gain on sale of investment Decrease in accounts receivable Increase in inventory Increase in accounts payable Decrease in bond discount Increase in salaries payable Decrease in prepaid insurance Increase in income tax payable Net cash flows from operating activities Expenses and loss: Cost of goods sold Salaries Interest expense Insurance Depreciation Patent amortization Loss on sale of land 120 103 12 20 10 (24) (12) 18 212 124 62 S62 Income before tax 10 Income tax expense Net income 9'1
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Related Book For
Intermediate Accounting
ISBN: 9781259722660
9th Edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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