Required information [The following information applies to the questions displayed below.] Portions of the financial statements for Hawkeye Company are provided below. $ 970 385 585 HAWKEYE COMPANY Income Statement For the Year Ended December 31, 2021 ($ in millions) Sales Cost of goods sold Gross margin Operating expenses: Salaries Depreciation Loss on sale of land Total operating expenses Operating income Other income (expense): Gain on sale of cash equivalents Interest expense Income before tax Income tax expense Net income $ 239 197 10 446 139 4 (47) 96 48 $ 48 HAWKEYE COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) Year 2021 2020 Change Cash $ 226 $ 207 $ 19 Accounts receivable 402 435 (33) Inventory 874 857 17 Accounts payable 217 248 (31) Salaries payable 187 202 (15) Interest payable 69 57 12 Income tax payable 97 118 (21) Required: 1. Prepare the cash flows from operating activities section of the statement of cash flows for Hawkeye Company using the direct method. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.) Cash Flows from Operating Activities: Net cash flows from operating activities $ 0 Required: 2. Prepare the cash flows from operating activities section of the statement of cash flows for Hawkeye Company using the indirect method. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.) Cash Flows from Operating Activities: Adjustments for noncash effects Changes in operating assets and liabilities: Net cash flows from operating activities $