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 ($ in millions)

Revenues and gains:
Sales	$	292.00
Gain on sale of cash equivalents		1.10
Gain on sale of investments		23.10		$	316.20
Expenses and loss:
Cost of goods sold	$	111.00
Salaries		39.10
Interest expense		11.10
Insurance		19.10
Depreciation		9.10
Patent amortization		3.10
Loss on sale of land		5.10			197.60
Income before tax					118.60
Income tax expense					59.30
Net income				$	59.30

Reconciliation of Net Income to Net Cash Flows from Operating Activities ($ in millions)
Net income	$	59.30
Adjustments for noncash effects:
Depreciation expense		9.10
Patent amortization expense		3.10
Loss on sale of land		5.10
Gain on sale of investment		(23.10	)
Decrease in accounts receivable		5.10
Increase in inventory		(11.10	)
Increase in accounts payable		17.10
Decrease in bond discount		.10
Increase in salaries payable		5.10
Decrease in prepaid insurance		3.10
Increase in income tax payable		9.10
Net cash flows from operating activities	$	82.00
Cash Flows from Operating Activities: Cash received from customers Cash increase from sale of cash equivalents Cash paid to suppliers Cash paid to employees Cash paid for interest Cash paid for insurance Cash paid for income taxes Net cash flows from operating activities