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, 2818 (s in millions) Revenues and gains Sales $ 384.8e Gain on sale of cash equiva Gain on sale of investments lents 1.78 23.7 329.48 Expenses and loss Cost of goods sold Salaries $ 117.8e 39.78 Interest expense Insurance 11.78 19.78 Depreciation Patent amortization 9.7e 3.78 Loss on sale of land 5.78 287.28 Income before tax 122.28 Income tax expense 61.18 $ 61.18 Net income Reconciliation of Net Income to Net Cash Flows from Operating Activities ($ in millions) Net income $ 61.1e Adjustments for noncash effects Depreciation expense Patent amotization expense Loss on sale of land 9.7e 3.78 5.78 Gain on sale of investment (23.78) 5.78 Decrease in accounts receivable Increase in inventory Incre Decrease in bond discount (11.78) 17.78 .78 5.70 3.78 ase in accounts payable Increase in salaries payable ase in prepaid insurance Decre Increase in income tax payable $ 88.88 Net cash flows from operating activities Requlrec Prepare the cash flows from operating activities section of the statement of cash flows (direct method). Cash Flows from Operating Activities: Cash received from customers Net cash flows from operating activities 0.00