The income statement and a schedule reconciling cash flows from operating activities to net income are provided below for Macrosoft Corporation. 

Required: 

Prepare the cash flows from operating activities section of the statement of cash flows (direct method).

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MACROSOFT CORPORATION Reconciliation of Net Income Income Statement to Net Cash Flows For the Year Ended December 31, 2021 from Operating Activities ($ in millions) Revenues and gains: Net income $ 62 Sales $310 Gain on sale of cash equivalents 2 Adjustments for noncash effects: 24 $336 Depreciation expense 10 Gain on sale of investments Patent amortization expense 4 Expenses and loss: Cost of goods sold Salaries Loss on sale of land 6 120 40 Gain on sale of investment (24) Interest expense 12 Decrease in accounts receivable 6 Insurance 20 Increase in inventory (12) Depreciation 10 Increase in accounts payable 18 Patent amortization 4 Decrease in bond discount 1 Loss on sale of land 212 Increase in salaries payable 6. Income before tax 124 Decrease in prepaid insurance 4 Income tax expense 62 Increase in income tax payable 10 Net income $ 62 Net cash flows from operating activities $ 91