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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, 2016 ($ in
Portions of the financial statements for Myriad Products are provided below. |
MYRIAD PRODUCTS COMPANY Income Statement For the Year Ended December 31, 2016 ($ 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, 2016 and 2015 ($ in millions) | |||||||||
Year | |||||||||
2016 | 2015 | 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 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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