Required information [The following information applies to the questions displayed below.] Portions of the financial statements for Hawkeye Company are provided below. Sales HAWKEYE COMPANY Income Statement For the Year Ended December 31, 2021 Cost of goods sold Gross margin Operating expenses: Salaries Depreciation Loss on sale of land ($ in millions). Total operating expenses Operating income Other income (expense): Gain on sale of cash equivalents Interest expense Income before tax Income tax expense Net income $ 890 345 545 $ 231 189 14 434 111 4 (39) 76 38 $ 38 Net income HAWKEYE COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) Year S < Prev 4 5 of 20 Next HANKEYE COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) Cash Accounts receivable Inventory Year 2021 2020 $234 $211 394 419 882 861 Accounts payable 221 256 Salaries payable 181 190 Change $ 23 (25) 21 (35) (9) Interest payable 57 51 6 Income tax payable 91 106 (15) 30 Check m 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.) Cash Flows from Operating Activities: Required: 2. Prepare the cash flows from operating activities section of the statement of cash flows for Hawkeye 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.) Cash Flows from Operating Activities: Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activities