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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 | $ | 820 | |||||
Cost of goods sold | 287 | ||||||
Gross margin | 533 | ||||||
Salaries expense | $ | 130 | |||||
Depreciation expense | 90 | ||||||
Amortization expense | 5 | ||||||
Interest expense | 30 | ||||||
Loss on sale of land | 4 | 259 | |||||
Income before taxes | 274 | ||||||
Income tax expense | 137 | ||||||
Net Income | $ | 137 | |||||
MYRIAD PRODUCTS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) | |||||||||
Year | |||||||||
2021 | 2020 | Change | |||||||
Cash | $ | 126 | $ | 122 | $ | 4 | |||
Accounts receivable | 253 | 265 | (12 | ) | |||||
Inventory | 461 | 472 | (11 | ) | |||||
Accounts payable | 183 | 178 | 5 | ||||||
Salaries payable | 103 | 108 | (5 | ) | |||||
Interest payable | 45 | 42 | 3 | ||||||
Income tax payable | 48 | 32 | 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).)
\begin{tabular}{|l|l|} \hline Cash Flows from Operating Activities: & \\ \hline & (\$ in millions) \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & $ \\ \hline Net cash flows from operating activities & $ \\ \hline \end{tabular}
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