Required information [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 Cost of goods sold Gross margin Operating expenses: Salaries Depreciation Loss on sale of land Total operating expenses Operating income Other income (expense): Gain on sale of cash equivalents Interest expense Income before tax Income tax expense Net income $ 980 390 590 $240 198 14 452 HAWKEYE COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) 138 4 (48) 94 47 $ 47 Year Cash Accounts receivable 2021 2020 $228 $208 403- 437 Change $ 20 Inventory 876 858 (34) 18 Accounts payable 218 250 (32) Salaries payable 188 204 (16) Interest payable 71 58 13 Income tax payable 98 120 (22)