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, 2016 and 2015 ($ in millions)
	Year
	2016			2015			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 direct method.