The income statement and a schedule reconciling cash flows from operating activities to net income are provided below for Mike Roe Computers.

MIKE ROE COMPUTERS

Income Statement

For the Year Ended December $31,2024$

$($$ in millions$)$

Sales $ $151\mathrm{.}00$

Cost of goods sold $(90\mathrm{.}50)$

Gross margin $60\mathrm{.}50$

Salaries expense $ $21\mathrm{.}10$

Insurance expense $13\mathrm{.}10$

Depreciation expense $5\mathrm{.}50$

Interest expense $6\mathrm{.}50(46\mathrm{.}20)$

Gains and losses:

Gain on sale of equipment $13\mathrm{.}00$

Loss on sale of land $(4\mathrm{.}00)$

Income before tax $23\mathrm{.}30$

Income tax expense $(11\mathrm{.}65)$

Net income $ $11\mathrm{.}65$

Reconciliation of Net Income

to Net Cash Flows

from Operating Activities

$($$ in millions$)$

Net income $ $11\mathrm{.}65$

Adjustments for noncash effects:

Decrease in accounts receivable $5\mathrm{.}30$

Gain on sale of equipment $(13\mathrm{.}00)$

Increase in inventory $(6\mathrm{.}50)$

Increase in accounts payable $9\mathrm{.}55$

Increase in salaries payable $3\mathrm{.}50$

Depreciation expense $5\mathrm{.}50$

Decrease in bond discount $3\mathrm{.}25$

Decrease in prepaid insurance $2\mathrm{.}50$

Loss on sale of land $4\mathrm{.}00$

Increase in income tax payable $6\mathrm{.}50$

Net cash flows from operating activities $ $32\mathrm{.}25$

Required:

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, $($f$)$ paid for income taxes.

Prepare the cash flows from operating activities section of the statement of cash flows $($direct method$).$