The income statement and a schedule reconciling cash flows from operating activities to net income are provided below for Mike Roe Computers. $149.80 (89.90) 59.90 MIKE ROE COMPUTERS Income Statement For the Year Ended December 31, 2021 (s in millions) Sales Cost of goods sold Gross margin Salaries expense $19.89 Insurance expense Depreciation expense Interest expense Gains and losses: Gain on sale of equipment Loss on sale of land Income before tax Income tax expense Net income (42.40) (2.80) 26.50 (13.25) $ 13.25 Reconciliation of Net Income to Net Cash Flows from Operating Activities (5 in millions) Net income Adjustments for noncash effects: Decrease in accounts receivable Gain on sale of equipment Increase in inventory 13.25 4.90 (11.80) (5.90) (Prey 1 of 1 !!! Next > re to search o me @ 00 menti Saved $ 149 88 89.90) 59.9e MIKE ROE COMPUTERS Income Statement For the Year Ended December 31, 2821 ($ in millions) Sales Cost of goods sold Gross margin Salaries expense $19.80 Insurance expense Depreciation expense Interest expense 5.ge Gains and losses Gain on sale of equipment Loss on sale of land Income before tax Income tax expense 4.9e (42.40) 11.se (2.88) $ 13.25 Reconciliation of Net Income to Net Cash Flows from Operating Activities ($ in millions) Net income 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 Loss on sale of land Increase in income tax payable Net cash flows froe Operating activities 4.98 (11.80) (5.90) 8.98 2.90 4.9e 2.95 1.9e $38.78 Prby 1 of 1 e here to search Orte & Co Required: 1. Provide the summary journal entries which shows the cash flow for each of the following for Mike Roe Computers during the reporting period: (a) received from customers. (b) paid to suppliers, (c) paid to employees, (d) paid for interest (e) paid for Insurance, ( pald for income taxes. 2. Prepare the cash flows from operating activities section of the statement of cash flows (direct method) Complete this question by entering your answers in the tabs below