Portions of the financial statements for Myriad Products are provided below. so $ 760 228 532 MYRIAD PRODUCTS COMPANY Income Statement For the Year Ended December 31, 2021 ($ in millions) Sales Cost of goods sold Gross margin Salaries expense $115 Depreciation expense 84 Amortization expense 5 Interest expense 24 Loss on sale of land 4 Income before taxes Income tax expense Net Income 232 300 150 $ 150 MYRIAD PRODUCTS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) Year 2021 2020 Change Cash $126 $116 $ 10 Accounts receivable 239 256 (17) Inventory 448 466 (18) Accounts payable 180 166 14 Salaries payable 88 102 (14) Interest payable 49 36 13 Income tax payable 36 26 10 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).) Answer is complete but not entirely correct. ($ in millions) Cash Flows from Operating Activities: Cash received from customers s 17 X Cash paid to suppliers (4) X Cash paid for interest (13) X Cash paid for income taxes (10) X Cash paid to employees (14) X S Net cash flows from operating activities S S (24) 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: Net cash flows from operating activities $ 0 Portions of the financial statements for Myriad Products are provided below. so $ 760 228 532 MYRIAD PRODUCTS COMPANY Income Statement For the Year Ended December 31, 2021 ($ in millions) Sales Cost of goods sold Gross margin Salaries expense $115 Depreciation expense 84 Amortization expense 5 Interest expense 24 Loss on sale of land 4 Income before taxes Income tax expense Net Income 232 300 150 $ 150 MYRIAD PRODUCTS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) Year 2021 2020 Change Cash $126 $116 $ 10 Accounts receivable 239 256 (17) Inventory 448 466 (18) Accounts payable 180 166 14 Salaries payable 88 102 (14) Interest payable 49 36 13 Income tax payable 36 26 10 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).) Answer is complete but not entirely correct. ($ in millions) Cash Flows from Operating Activities: Cash received from customers s 17 X Cash paid to suppliers (4) X Cash paid for interest (13) X Cash paid for income taxes (10) X Cash paid to employees (14) X S Net cash flows from operating activities S S (24) 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: Net cash flows from operating activities $ 0
