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Solve Req (1) and (2) and Explain ALL [The following information applies to the questions displayed below. Portions of the financial statements for Hawkeye Company
Solve Req (1) and (2) and Explain ALL
[The following information applies to the questions displayed below. Portions of the financial statements for Hawkeye Company are provided below. $ 980 390 590 HAWKEYE COMPANY Income Statement For the Year Ended December 31, 2021 ($ in millions) Sales Cost of goods sold Gross margin Operating expenses: Salaries $ 240 Depreciation 198 Loss on sale of land 14 Total operating expenses Operating income Other income (expense): Gain on sale of cash equivalents Interest expense Income before tax Income tax expense Net income 452 138 4 (48) 94 47 $ 47 HAWKEYE COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) Year 2021 2020 Change Cash $228 $208 $ 20 Accounts receivable 403 437 (34) Inventory 876 858 18 Accounts payable 218 250 (32) Salaries payable 188 204 (16) Interest payable 71 58 13 Income tax payable 98 120 (22) CO P Required information Income tax payable 98 120 (22) 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: Net cash flows from operating activities $ Required information 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 $ 0Step by Step Solution
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