Question
Portions of the financial statements for Myriad Products are provided below. MYRIAD PRODUCTS COMPANY Income Statement For the Year Ended December 31, 2018 ($ in
Portions of the financial statements for Myriad Products are provided below. MYRIAD PRODUCTS COMPANY Income Statement For the Year Ended December 31, 2018 ($ in millions) Sales $ 860 Cost of goods sold 301 Gross margin 559 Salaries expense $ 140 Depreciation expense 94 Patent amortization expense 5 Interest expense 34 Loss on sale of land 4 277 Income before taxes 282 Income tax expense 141 Net Income $ 141 MYRIAD PRODUCTS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2018 and 2017 ($ in millions) Year 2018 2017 Change Cash $ 132 $ 126 $ 6 Accounts receivable 257 271 (14 ) Inventory 463 476 (13 ) Accounts payable 193 186 7 Salaries payable 105 112 (7 ) Interest payable 51 46 5 Income taxes payable 42 36 6 Required: Prepare the cash flows from operating activities section of the statement of cash flows for Myriad Products Company using the indirect 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.
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