Required information [The following information applies to the questions displayed below.] Portions of the financial statements for Hawkeye Company are provided below. 360 560 $ 234 HAWKEYE COMPANY Income Statement For the Year Ended December 31, 2021 (s 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 192 14 120 (42) $ 41 HAWKEYE COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) Year 2021 2020 Change Cash $ 216 $ 14 $ 202 397 425 (28) Accounts receivable Inventory 864 852 212 238 Accounts payable Salaries payable 182 192 Interest payable 5952 Income tax payable 92 (16) 108 (26 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.) Answer is complete but not entirely correct. Cash Flows from Operating Activities: Cash received from customers Gain on sale of cash equivalents Cash paid to suppliers Cash paid to employees Cash paid for interest Cash paid for income taxes 948 0 % (398) (244) (35) is 271 Net 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.) & Answer is not complete. $ 41 Cash Flows from Operating Activities: Net income Adjustments for noncash effects: Depreciation expense Loss on sale of land 192 0% 28 (12) Changes in operating assets and liabilities: Decrease in accounts receivable Increase in inventory Decrease in accounts payable Decrease in salaries payable Decrease in income tax payable OOOOO (26) (10) (16) - S 197 Net cash flows from operating activities 2 of 2 Next