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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 | $ | 1,000 | |||||
Cost of goods sold | 350 | ||||||
Gross margin | 650 | ||||||
Salaries expense | $ | 175 | |||||
Depreciation expense | 108 | ||||||
Amortization expense | 5 | ||||||
Interest expense | 48 | ||||||
Loss on sale of land | 4 | 340 | |||||
Income before taxes | 310 | ||||||
Income tax expense | 155 | ||||||
Net Income | $ | 155 | |||||
MYRIAD PRODUCTS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) | |||||||||
Year | |||||||||
2021 | 2020 | Change | |||||||
Cash | $ | 153 | $ | 140 | $ | 13 | |||
Accounts receivable | 271 | 292 | (21 | ) | |||||
Inventory | 470 | 490 | (20 | ) | |||||
Accounts payable | 228 | 214 | 14 | ||||||
Salaries payable | 112 | 126 | (14 | ) | |||||
Interest payable | 72 | 60 | 12 | ||||||
Income tax payable | 63 | 50 | 13 | ||||||
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).)
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