E 21-23 Cash flows from operating activities (direct method) Portions of the financial statements for Myriad Products are provided below MYRIAD PRODUCTS COMPANY Income Statement For the Year Ended December 31, 2018 ($ in millions) LO21-3 Sales Cost of goods sold $660 250 410 Gross margin Salaries expense Depreciation expense Patent amortization expense Interest expense Loss on sale of land Income before taxes $110 90 5 20 3 228 182 91 $ 91 Income tax expense Net Income MYRIAD PRODUCTS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2018 and 2017 ($ in millions) Year 2018 2017 Change Cash Accounts receivable Inventory Accounts payable Salaries payable Interest payable Income taxes payable $102 220 440 140 80 25 15 $100 232 450 134 86 20 10 (12) (10) 6 5 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