The Income statement and a schedule reconciling cash flows from operating activities to net income are provided below for Mike Roe Computers. KTEROR COMPUTERS Income Statement For the Year Ended December 31, 2021 E in millions) Sales $150 Coat of goods sold (90) Gross margin 60 Salaries expense $ 20 Insurance expense 12 Depreciation expense 5 Interest expense Gains and losses Gain on wale of equipment 12 Loss on sale at land 0) Income before tax 26 Income tax expense (13) Net Income $ 13 13 5 (12) (6) Reconciliation of Net tocon to Net Cash Flow tron Operating Activities is in illion Net inom Adjustments for noncash effects Decrease in accounts receivable Gain on sale of equipment Increase in inventory Increase in accounts payable Increase in salaries payable Depreciation expense Decrease in bond discount Decrease in prepaid insurance Los on sale of land Increase in income tax payable Het cash flows from operating activities $ 31