Question

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					$	900
Cost of goods sold						315
Gross margin						585
Salaries expense	$	150
Depreciation expense		98
Patent amortization expense		5
Interest expense		38
Loss on sale of land		4				295
Income before taxes						290
Income tax expense						145
Net Income					$	145

MYRIAD PRODUCTS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2018 and 2017 ($ in millions)
	Year
	2018			2017			Change
Cash	$	138		$	130		$	8
Accounts receivable		261			277			(16	)
Inventory		465			480			(15	)
Accounts payable		203			194			9
Salaries payable		107			116			(9	)
Interest payable		57			50			7
Income taxes payable		48			40			8

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.)

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 (.e., 10,000,000 should be entered as 10.). Amounts to be deducted should be indicated with a minus sign.) ($ in millions) Cash Flows from Operating Activities: Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activities $

Answer 1

Cash flow from operating Activities	$ in Million
Net Income	145
Non cash Expenses
Depreciation	98
Patent amortization expenses	5
Loss on sale of Land	4
Changes in operating Assets & Liabilities
Cash(138-130)	8
Accounts receivable(277-261)	16
Inventory(480-465)	15
Accounts Payable(194-203)	-9
Salaries payable(116-107)	9
Interest payable(50-57)	-7
Income tax payable(40-48)	-8
Net Cash flow from operating Activities	276