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Required information [The following information applies to the questions displayed below.) Portions of the financial statements for Hawkeye Company are provided below. $ 940 370
Required information [The following information applies to the questions displayed below.) Portions of the financial statements for Hawkeye Company are provided below. $ 940 370 570 HAWKEYE COMPANY Income Statement For the Year Ended December 31, 2021 ($ in millions) Sales Cost of goods sold Gross margin Operating expenses: Salaries $ 236 Depreciation 194 Loss on sale of land 10 Total operating expenses Operating income Other income (expense): Gain on sale of cash equivalents Interest expense Income before tax Income tax expense Net income 440 130 (44) 90 45 $ 45 HAWKEYE COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 {$ in millions) Year 2021 2020 Change Cash $220 $204 $ 16 Accounts receivable 399 429 (30) Inventory 868 854 14 Accounts payable 214 242 (28) Salaries payable 184 196 (12) Interest payable 63 54 9 Income tax payable 94 112 (18) 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 (ie., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.) 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 $ 0
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