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In: Accounting

CHAPTER 21 (8.) Portions of the financial statements for Myriad Products are provided below. MYRIAD PRODUCTS...

CHAPTER 21 (8.)

Portions of the financial statements for Myriad Products are provided 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 the statement of cash flows for Myriad Products Company using the direct method.

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