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Portions of the financial statements for Hawkeye Company are provided below. HAWKEYE COMPANY Income Statement For the Year Ended December 31, 2024 ($ in millions)

Portions of the financial statements for Hawkeye Company are provided below.

HAWKEYE COMPANY
Income Statement
For the Year Ended December 31, 2024
($ in millions)
Sales $ 890
Cost of goods sold 345
Gross margin 545
Operating expenses:
Salaries $ 231
Depreciation 189
Loss on sale of land 14
Total operating expenses 434
Operating income 111
Other income (expense):
Gain on sale of cash equivalents 4
Interest expense (39)
Income before tax 76
Income tax expense 38
Net income $ 38
HAWKEYE COMPANY
Selected Accounts from Comparative Balance Sheets
December 31, 2024 and 2023 ($ in millions)
Year Change
2024 2023
Cash $ 234 $ 211 $ 23
Accounts receivable 394 419 (25)
Inventory 882 861 21
Accounts payable 221 256 (35)
Salaries payable 181 190 (9)
Interest payable 57 51 6
Income tax payable 91 106 (15)

Required:

2. Prepare the cash flows from operating activities section of the statement of cash flows for Hawkeye Company using the indirect method.

Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.

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