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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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