value: 10.00 points

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

MIKE ROE COMPUTERS Income Statement For the Year Ended December 31, 2013
Sales			$	151.20
Cost of goods sold				(90.60)
Gross margin				60.60
Salaries expense	$	21.20
Insurance expense		13.20
Depreciation expense		5.60
Interest expense		6.60		(46.60)
Gains and losses:
Gain on sale of equipment				13.20
Loss on sale of land				(4.20)
Income before tax				23.00
Income tax expense				(11.50)
Net income			$	11.50

Reconciliation of Net Income to Net Cash Flows from Operating Activities
Net income	$	11.50
Adjustments for noncash effects:
Decrease in accounts receivable		5.60
Gain on sale of equipment		(13.20)
Increase in inventory		(6.60)
Increase in accounts payable		9.60
Increase in salaries payable		3.60
Depreciation expense		5.60
Decrease in bond discount		3.30
Decrease in prepaid insurance		2.60
Loss on sale of land		4.20
Increase in income tax payable		6.60
Net cash flows from operating activities	$	32.80

Required:
1.	Calculate each of the following amounts for Mike Roe Computers: (Enter your answers in millions of dollars rounded to 2 decimal places.)

2.	Prepare the cash flows from operating activities section of the statement of cash flows (direct method). (Enter your answers in millions of dollars rounded to 2 decimal places. Amounts to be deducted should be indicated with a minus sign.)