P 216: Cash flows from operating activities (direct method) derived from an income statement and cash flows from operating activities (indirect method) LO213, LO214 The income statement and a schedule reconciling cash flows from operating activities to net income are provided below ($ in millions) for Mike Roe Computers. Net income $13 Sales $150 Decrease in accounts receivable 5 Cost of goods sold (90) Gain on sale of equipment (12) Gross margin 60 Increase in inventory (6) Salaries expense $20 Increase in accounts payable 9 Insurance expense 12 Increase in salaries payable 3 Depreciation expense 5 Depreciation expense 5 Interest expense 6 (43) Decrease in bond discount 3 Gains and losses: Decrease in prepaid insurance 2 Gain on sale of equipment 12 Loss on sale of land 3 Loss on sale of land (3) Increase in income tax payable 6 Income before tax 26 Income tax expense (13) Net income $ 13 Net cash flows from operating activities $31 Required: 1. Calculate each of the following amounts for Mike Roe Computers: a. Cash received from customers during the reporting period. b. Cash paid to suppliers of goods during the reporting period. c. Cash paid to employees during the reporting period. d. Cash paid for interest during the reporting period. e. Cash paid for insurance during the reporting period. f. Cash paid for income taxes during the reporting period. 2. Prepare the cash flows from operating activities section of the statement of cash flows (direct method).