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Required information Skip to question [The following information applies to the questions displayed below.] Portions of the financial statements for Hawkeye Company are provided below.

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[The following information applies to the questions displayed below.] Portions of the financial statements for Hawkeye Company are provided below.

HAWKEYE COMPANY
Income Statement
For the Year Ended December 31, 2021
($ in millions)
Sales $ 1,000
Cost of goods sold 400
Gross margin 600
Operating expenses:
Salaries $ 242
Depreciation 200
Loss on sale of land 10
Total operating expenses 452
Operating income 148
Other income (expense):
Gain on sale of cash equivalents 4
Interest expense (50 )
Income before tax 102
Income tax expense 51
Net income $ 51

HAWKEYE COMPANY
Selected Accounts from Comparative Balance Sheets
December 31, 2021 and 2020 ($ in millions)
Year
2021 2020 Change
Cash $ 232 $ 210 $ 22
Accounts receivable 405 441 (36 )
Inventory 880 860 20
Accounts payable 220 254 (34 )
Salaries payable 190 208 (18 )
Interest payable 75 60 15
Income tax payable 100 124 (24 )

Required: 1. Prepare the cash flows from operating activities section of the statement of cash flows for Hawkeye Company using the direct 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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