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).

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