The income statement and a schedule reconciling cash flows from operating activities to net income are provided below for Macrosoft Corporation. MACROSOFT CORPORATION Income Statement For the Year Ended December 31, 2016 BETe(S in millions) Revenues and gains: Sales Gain on sale of cash equivalents Gain on sale of investments 320.00 2.50 24.50 347.00 Expenses and loss: Cost of goods sold Salaries Interest expense Insurance Depreciation Patent amortization Loss on sale of land $ 125.00 40.50 12.50 20.50 10.50 4.50 6.50 220.00 127.00 63.50 Income before tax Income tax expense Net income 63.50 Reconciliation of Net Income to Net Cash Flows from Operating Activities ($ in millions) Net income S 63.50 Adjustments for noncash effects Depreciation expense Patent amortization expense Loss on sale of land Gain on sale of investment Decrease in accounts receivable Increase in inventory 10.50 4.50 6.50 (24.50) 6.50 (12.50)