Question

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 $620 Cost of goods sold 217 Gross margin 403 Salaries expense$85 Depreciation expense 72 Amortization expense 5 Interest expense 12 Loss on sale of land 3 177 Income before taxes 226 Income tax expense 113 Net Income $113 MYRIAD PRODUCTS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) Year 20212020Change Cash$108 $104 $4 Accounts receivable 224 238 (14) Inventory 442 454 (12) Accounts payable 150 142 8 Salaries payable 82 90 (8) Interest payable 31 24 7 Income tax payable 21 14 7 Required: Prepare the cash flows from the operating activities section of the statement of cash flows for Myriad Products Company using the indirect method

Answer 1

$233 million

Step-by-step explanation:

Statement of cash flow

Cash flow from operating activity

Particulars Amount ($ in millions)

Net income 113

Adjustment in net income

Depreciation 72

Amortization 5

Loss on sale of land 3

Decrease account receivable 14

Decrease inventory 12

Increase account payable 8

Decrease salary payable (8)

Increase interest payable 7

Increase income tax payable 7 120

Net cash flow from operating activity 233