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Portions of the financial statements for Myriad Products are provided below. MYRIAD PRODUCTS COMPANY Income Statement For the Year Ended December 31, 2021 ($ in
Portions of the financial statements for Myriad Products are provided below. MYRIAD PRODUCTS COMPANY Income Statement For the Year Ended December 31, 2021 ($ in millions) Sales $ 640 Cost of goods sold 224 Gross margin 416 Salaries expense $ 90 Depreciation expense 74 Amortization expense 5 Interest expense 14 Loss on sale of land 3 186 Income before taxes 230 Income tax expense 115 Net Income $ 115 5 MYRIAD PRODUCTS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) Year 2021 2020 Change Cash $111 $106 $ 5 Accounts receivable 226 241 (15) Inventory 443 456 (13) Accounts payable 155 146 Salaries payable 83 92 (9) Interest payable 34 26 8 Income tax payable 24 16 8 MYRIAD PRODUCTS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) Year 2021 2020 Change Cash $111 $106 $ 5 Accounts receivable 226 241 (15) Inventory 443 456 (13) Accounts payable 155 146 9 Salaries payable 83 92 (9) Interest payable 34 26 8 Income tax payable 24 8 16 Required: Prepare the cash flows from operating activities section of the statement of cash flows for Myriad Products Company using the direct method. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) ($ in millions) Cash Flows from Operating Activities: Cash received from customers Cash paid to suppliers Cash paid to employees Cash paid for interest Cash paid for income taxes Net cash flows from operating activities $ 0
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