Portions of the financial statements for Myriad Products are provided below. MYRIAD PRODUCTS COMPANY Income Statement For the Year...

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Accounting

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 $ 860
Cost of goods sold 301
Gross margin 559
Salaries expense $ 140
Depreciation expense 94
Patent amortization expense 5
Interest expense 34
Loss on sale of land 4 277
Income before taxes 282
Income tax expense 141
Net Income $ 141
MYRIAD PRODUCTS COMPANY
Selected Accounts from Comparative Balance Sheets
December 31, 2018 and 2017
($ in millions)
Year
2018 2017 Change
Cash $ 132 $ 126 $ 6
Accounts receivable 257 271 (14 )
Inventory 463 476 (13 )
Accounts payable 193 186 7
Salaries payable 105 112 (7 )
Interest payable 51 46 5
Income taxes payable 42 36 6

Required:
Prepare the cash flows from operating activities section of thestatement of cash flows for Myriad Products Company using thedirect method. (Amounts to be deducted should beindicated with a minus sign. Enter your answers in millions (i.e.,10,000,000 should be entered as 10).)

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Solution Myriad Products Company Statement of Cash Flows Direct Method For Year Ended December 31 2018 Particulars in Millions Cash Flows from operating activities Cash received from customers 874 Cash paid to suppliers 281 Cash paid to employees 147 Cash paid for See Answer

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Portions of the financial statements for Myriad Products areprovided below.MYRIAD PRODUCTS COMPANYIncome StatementFor the Year Ended December 31, 2018($ in millions)Sales$860Cost of goods sold301Gross margin559Salaries expense$140Depreciation expense94Patent amortization expense5Interest expense34Loss on sale of land4277Income before taxes282Income tax expense141Net Income$141MYRIAD PRODUCTS COMPANYSelected Accounts from Comparative Balance SheetsDecember 31, 2018 and 2017($ in millions)Year20182017ChangeCash$132$126$6Accounts receivable257271(14)Inventory463476(13)Accounts payable1931867Salaries payable105112(7)Interest payable51465Income taxes payable42366Required:Prepare the cash flows from operating activities section of thestatement of cash flows for Myriad Products Company using thedirect method. (Amounts to be deducted should beindicated with a minus sign. Enter your answers in millions (i.e.,10,000,000 should be entered as 10).)

MYRIAD PRODUCTS COMPANY Income Statement For the Year Ended December 31, 2018 ($ in millions)
Sales			$	860
Cost of goods sold				301
Gross margin				559
Salaries expense	$	140
Depreciation expense		94
Patent amortization expense		5
Interest expense		34
Loss on sale of land		4		277
Income before taxes				282
Income tax expense				141
Net Income			$	141

MYRIAD PRODUCTS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2018 and 2017 ($ in millions)
	Year
	2018		2017		Change
Cash	$	132	$	126	$	6
Accounts receivable		257		271		(14	)
Inventory		463		476		(13	)
Accounts payable		193		186		7
Salaries payable		105		112		(7	)
Interest payable		51		46		5
Income taxes payable		42		36		6