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Portions of the financial statements for Hawkeye Company are provided below. $ 960 380 580 HAWKEYE COMPANY Income Statement For the Year Ended December 31,
Portions of the financial statements for Hawkeye Company are provided below. $ 960 380 580 HAWKEYE COMPANY Income Statement For the Year Ended December 31, 2021 ($ in millions) Sales Cost of goods sold Gross margin Operating expenses : Salaries $ 238 Depreciation 196 LP Loss on sale of land 12 Total operating expenses Operating income Other income (expense): Gain on sale of cash equivalents Interest expense Income before tax Income tax expense Net income 446 134 ***: (46) 92 46 46 HAWKEYE COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) Year 2021 2020 Change Cash $ 224 $206 $ 18 Accounts receivable 401 433 (32) Inventory 872 856 16 Accounts payable 216 246 (30) Salaries payable 186 200 (14) Interest payable 67 56 11 Income tax payable 96 116 (20) Required: 1. Prepare the cash flows from operating activities section of the statement of cash flows for Hawkeye Company using the direct method. (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.) Cash Flows from Operating Activities: Net cash flows from operating activities $ 0
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