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 Income Statement For the Year Ended December 31, 2024 ($ in millions) Revenues and gains: Sales Gain on sale of cash equivalents Gain on sale of investments Expenses and loss: Cost of goods sold Salaries Interest expense Insurance Depreciation Patent amortization Loss on sale of land Income before tax Income tax expense Net income $310 2 24 120 40 12 20 10 4 6 Reconciliation of Net Income to Net Cash Flows from Operating Activities 212 124 62 $62 Net income Adjustments for noncash effects: $336 Depreciation expense Patent amortization expense Loss on sale of land Gain on sale of investment Decrease in accounts receivable Increase in inventory Increase in accounts payable Decrease in bond discount Increase in salaries payable Decrease in prepaid insurance Increase in income tax payable Net cash flows from operating activities $ 62 10 4 6 (24) 6 (12) 18 1 6 4 10 $91