Portions of the financial statements for Myriad Products are provided below.
MYRIAD PRODUCTS COMPANY
Income Statement
For the Year Ended December 31, 2016
($ in millions)
Sales $ 620
Cost of goods sold (217)
Gross margin 403
Salaries expense $ 85
Depreciation expense 72
Patent 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, 2016 and 2015
($ in millions)
Year
2016 2015 Change
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 taxes payable 21 14 7
Required:
Prepare the cash flows from 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.)