The income statement and a schedule reconailing provided below for Macrosoft Corporation. cash flows from operating activities to net ncome are MACROSOFT CORPORATION Income Statement For the Year Ended December 31, 2016 s in millions) Revenues and gains: $296.00 Sales Gain on sale of cash equivalents Gain on sale of investments 1.30 23.30 320.60 Expenses and loss: Cost of goods sold Salaries Interest expense Insurance Depreciation Patent amortization Loss on sale of land $ 113.00 39.30 11.30 19.30 9.30 3.30 5.30 200.80 Income before tax 19.80 59.90 Income tax expense Net income $ 59.90 Reconciliation of Net Income to Net Cash Flows from Operating Activities S in millions) Net income S 59.90 Adjustments for noncash effects: Depreciation expense Patent amortization expense Loss on sale of land Gain on sale of investment Decrease in accounts receivable 9.30 3.30 5.30 (23.30) 5.30 128