The income statement and a schedule reconciling cash flows from operating activities to net income or provided below ($ in millions) for Mike Roe computers.

MIKE ROE COMPUTERS Income Statement For the Year Ended December 31, 2018 Sales Cost of goods sold $150.20 (90.00 60.20 Gross margin Salaries expense Insurance expense Depreciation expense Interest expense Gains and losses: $18.20 12.00 4.50 5.50 (40.20) Gain on sale of equipment Loss on sale of land 11.00 (2.00 29.00 Income before tax Income tax expense (14-50 s 14.50 Net income Reconciliation of Net Income to Net Cash Flows from Operating Activities 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 from operating activities S 14.50 4.50 (11.00) (5.50) 8.50 2.50 4.50 2.75 2.00 2.00 5.50 s 30.25