Portions of the financial statements for Myriad Products are provided below. MYR

Question

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 Cost of goods sold $ 980 (343) 637 Gross margin Salaries expense Depreciation expense Patent amortization expense Interest expense Loss on sale of land $170 106 46 4(331) 306 (153) S 153 Income before taxes Income tax expense Net Income MYRIAD PRODUCTS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2016 and 2015 ($ in millions) 2016 2015 Change Cash S150 $138 S 12 Accounts payable Salaries payable Interest payable Income taxes payable 269 289 (20) 469 488 19) 210 1 124 13) 58 48 223 13 69 60 12 Required: Prepare the cash flows from operating activities section of the statement of cash flows for Myriad Products Company using the direct method. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) $ in millions) Cash Flows from Operating Activities Net cash flows from operating activities

Explanation / Answer

Calculate cash flow from operating activities :

Cash received from customer (980+20) 1000 Cash paid to supplier (311) Cash paid for salary (183) Cash paid for interest (35) Cash paid for income tax (141) Net cash flow from operating activities 330

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