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[The following information applies to the questions displayed below.] Portions of the financial statements for Hawkeye Company are provided below.

HAWKEYE COMPANY
Income Statement
For the Year Ended December 31, 2021
($ in millions)
Sales				$	960
Cost of goods sold					380
Gross margin					580
Operating expenses:
Salaries	$	238
Depreciation		196
Loss on sale of land		12
Total operating expenses					446
Operating income					134
Other income (expense):
Gain on sale of cash equivalents					4
Interest expense					(46	)
Income before tax					92
Income tax expense					46
Net income				$	46

HAWKEYE COMPANY
Selected Accounts from Comparative Balance Sheets
December 31, 2021 and 2020 ($ in millions)
	Year
	2021			2020			Change
Cash	$	224		$	206		$	18
Accounts receivable		401			433			(32	)
Inventory		872			856			16
Accounts payable		216			246			(30	)
Salaries payable		186			200			(14	)
Interest payable		67			56			11
Income tax payable		96			116			(20	)

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.)

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