60.1K

Verified Solution

Link Copied!

Portions of the financial statements for Myriad Products are provided below. MYRIAD PRODUCTS COMPANY Income Statement For the Year Ended December 31, 2021 ($ in millions) Sales $ 600 Cost of goods sold 210 Gross margin 390 Salaries expense $ 80 Depreciation expense 70 Amortization expense 5 Interest expense 10 Loss on sale of land 3 168 Income before taxes 222 Income tax expense 111 Net Income $ 111 MYRIAD PRODUCTS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) Year 2021 2020 Change Cash $105 $102 $ 3 Accounts receivable 222 235 (13) Inventory 441 452 (11) Accounts payable 145 138 7 Salaries payable 81 88 (7) Interest payable 28 22 Income tax payable 18 12 MYRIAD PRODUCTS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) Year 2021 2029 Change Cash $105 $102 $ 3 Accounts receivable 222 235 (13) Inventory 441 452 (11) Accounts payable 145 138 7 Salaries payable 81 88 (7) Interest payable 28 22 6 Income tax payable 18 12 6 Required: Prepare the cash flows from the operating activities section of the statement of cash flows for Myriad Products 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.) ($ in millions) Cash Flows from Operating Activities: Net income Adjustments for noncash effects: Depreciation expense Amortization expense Loss on sale of land Changes in operating assets and liabilities: Decrease in accounts receivable Decrease in inventory Increase in accounts payable Decrease in salaries payable Increase in interest payable Increase in income tax payable Net cash flows from operating activities $ 0

Answer & Explanation Solved by verified expert

See Answer