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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, 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 | $ | 780 | |||||
Cost of goods sold | 273 | ||||||
Gross margin | 507 | ||||||
Salaries expense | $ | 120 | |||||
Depreciation expense | 86 | ||||||
Patent amortization expense | 5 | ||||||
Interest expense | 26 | ||||||
Loss on sale of land | 4 | 241 | |||||
Income before taxes | 266 | ||||||
Income tax expense | 133 | ||||||
Net Income | $ | 133 | |||||
MYRIAD PRODUCTS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2018 and 2017 ($ in millions) | |||||||||
Year | |||||||||
2018 | 2017 | Change | |||||||
Cash | $ | 120 | $ | 118 | $ | 2 | |||
Accounts receivable | 249 | 259 | (10 | ) | |||||
Inventory | 449 | 468 | (19 | ) | |||||
Accounts payable | 185 | 170 | 15 | ||||||
Salaries payable | 92 | 104 | (12 | ) | |||||
Interest payable | 52 | 38 | 14 | ||||||
Income taxes payable | 42 | 28 | 14 | ||||||
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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