CHAPTER 21 (8.) Portions of the financial statements for Myriad Products are provided below. MYRIAD PRODUCTS COMPANY Income Statement For...
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CHAPTER 21 (8.)
Portions of the financial statements for Myriad Products areprovided below.
MYRIAD PRODUCTS COMPANY
Income Statement
For the Year Ended December 31, 2018
($ in millions) Sales $ 1,000 Cost of goods sold 350 Gross margin 650 Salaries expense $ 175 Depreciation expense 108 Patent amortization expense 5 Interest expense 48 Loss on sale of land 4 340 Income before taxes 310 Income tax expense 155 Net Income $ 155
MYRIAD PRODUCTS COMPANY
Selected Accounts from Comparative Balance Sheets
December 31, 2018 and 2017
($ in millions) Year 2018 2017 Change Cash $ 153 $ 140 $ 13 Accounts receivable 271 292 (21 ) Inventory 470 490 (20 ) Accounts payable 228 214 14 Salaries payable 112 126 (14 ) Interest payable 72 60 12 Income taxes payable 63 50 13
Required:
Prepare the cash flows from operating activities section of thestatement of cash flows for Myriad Products Company using thedirect method.
CHAPTER 21 (8.)
Portions of the financial statements for Myriad Products areprovided below.
| MYRIAD PRODUCTS COMPANY Income Statement For the Year Ended December 31, 2018 ($ in millions) | |||||||
| Sales | $ | 1,000 | |||||
| Cost of goods sold | 350 | ||||||
| Gross margin | 650 | ||||||
| Salaries expense | $ | 175 | |||||
| Depreciation expense | 108 | ||||||
| Patent amortization expense | 5 | ||||||
| Interest expense | 48 | ||||||
| Loss on sale of land | 4 | 340 | |||||
| Income before taxes | 310 | ||||||
| Income tax expense | 155 | ||||||
| Net Income | $ | 155 | |||||
| MYRIAD PRODUCTS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2018 and 2017 ($ in millions) | |||||||||
| Year | |||||||||
| 2018 | 2017 | Change | |||||||
| Cash | $ | 153 | $ | 140 | $ | 13 | |||
| Accounts receivable | 271 | 292 | (21 | ) | |||||
| Inventory | 470 | 490 | (20 | ) | |||||
| Accounts payable | 228 | 214 | 14 | ||||||
| Salaries payable | 112 | 126 | (14 | ) | |||||
| Interest payable | 72 | 60 | 12 | ||||||
| Income taxes payable | 63 | 50 | 13 | ||||||
Required:
Prepare the cash flows from operating activities section of thestatement of cash flows for Myriad Products Company using thedirect method.
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