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 (S in millions) Revenues and gains Sales Gain on sale of cash equivalents Gain on sale of investments s 296.00 1.30 23.30 $ 320 60 Expenses and loss Cost of goods sold Salaries Interest expense Insurance Depreciation Patent amortization Loss on sale of land s 113 00 39.30 19.30 9.30 3.30 5.30 200 80 Income before tax 119.80 59.90 Income tax expense Net income S 59 90 Reconciliation of Net Income to Net Cash Flows from Operating Actities (S in millions) Net income S 59.90 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 Increase in accounts payable Decrease in bond discount Increase in salaries payable Decrease in prepaid insurance Increase in income tax payable 9.30 3.30 5.30 (23.30) 5.30 17.30 30 5.30 3.30 9.30 Net cash flows from operating activities $ 84 00 Required Prepare the cash flows from operating activities section of the statement of cash flows (direct method) Enter your answers in millions rounded to 2 decimal places (L.e. 5.500,000 should be entered as 5.50). Amounts to be deducted should be indicated with a minus sign.) Cash Flows from Operating Activities Cash increase from sale of cash equivalents 296 00