E 21-22, E 21-23, E 21-24

1272 SECTION 4 Additional Financial Reporting Issues The accounting records of Baddour Company provided the data below. Prepare a reconciliation of net income to net cash flows from operating activities. E 21-22 Indirect method: reconciliation of net income to net cash flows from operating activities .LO21-4 Net loss Depreciation expense Increase in salaries payable Decrease in accounts receivable Increase in inventory Amortization of patent Reduction in discount on bonds $5,000 6,000 500 2,000 2.300 300 200 Portions of the financial statements for Myriad Products are provided below. E 21-23 Cash flows from operating activities (direct method) LO21-3 $660 250 410 MYRIAD PRODUCTS COMPANY Income Statement For the Year Ended December 31, 2021 (5 in milions Sales Cost of goods sold Gross margin Salaries expense $110 Depreciation expense 90 Amortization expense 5 Interest expense 20 Loss on sale of land 3 Income before taxes Income tax expense Net Income 228 182 91 $ 91 2020 MYRIAD PRODUCTS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) Year 2021 Change Cash $102 $100 $ 2 Accounts receivable 220 232 (12) Inventory 440 450 (10) Accounts payable 140 134 6 Salaries payable 80 86 (6) Interest payable 25 20 5 Income tax payable 15 10 5 Required: Prepare the cash flows from operating activities section of the statement of cash flows for Myriad Products Com pany using the direct method. E 21-24 Cash flows from operating activities (indirect method LO21-4 Refer to the data provided in E 21-23 for Myriad Products Company. Required: Prepare the cash flows from the operating activities section of the statement of cash flows for Myriad Products Company using the indirect method. Portions of the financial statements for Clear Transmissions Company are provided on the next page. E 21-25 Cash flows from operating activities (direct method) - includes sale of cash equivalent .LO21-3