P 21-6 Cash flows from operating activities (direct method) derived from an income statement and cash flows from operating activities (indirect method) L021-3, L021-4 The income statement and a schedule reconciling cash flows from operating activities to net income are provided below for Mike Roe Computers. MIKE ROE COMPUTERS Income Statement For the Year Ended December 31, 2021 ($ in millions) Sales $150 Cost of goods sold 90 Gross margin Salaries expense $20 Insurance expense Depreciation expense Intetest expense Gains and losses: Gain on sale of equipment Loss on sale of land Income before tax Income tax expense Income tax expense Net income Reconciliation of Net Income to Net Cash Flows from Operating Activities Net income $13 Adjustments for noncash effects: Decrease in accounts receivable Gain on sale of equipment Increase in inventory Increase in accounts payable Increase in salaries payable Depreciation expense Decrease in bond discount Decrease in prepaid insurance Loss on sale of land Increase in income tax payable Net cash flows from operating activities $31 Required: 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)