The income statement and a schedule reconciling cash flows from operating activities to net Income are provided
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The income statement and a schedule reconciling cash flows from operating activities to net Income are provided below for Macrosoft Corporation
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MACROSOFT CORPORATION Income Statement For the Year Ended December 31, 2021 ($ in millions) Revenues and gains: Sales $ 328.00 Gain on sale of cash equivalents 2.90 Gain on sale of investments 24.90 $ 355.80 Expenses and loss: Cost of goods sold $ 129.00 Salaries 40.90 Interest expense 12.90 Insurance 20.90 Depreciation 10.90 Patent amortization 4.90 Loss on sale of land 6.90 226.40 Income before tax 129.40 Income tax expense 64.70 Net income $ 64.70 Reconciliation of Net Income to Net Cash Flows from Operating Activities ($ in millions) Net income $ 64.70 Adjustments for noncash effects: Depreciation expense Patent amortization expense 10.90 4.90 Loss on sale of land 6.90 Gain on sale of investment (24.90) 6.90 Decrease in accounts receivable Increase in inventory Increase in accounts payable (12.90) 18.90 Decrease in bond discount 1.90 Increase in salaries payable Decrease in prepaid insurance Increase in income tax payable 6.90 4.90 10.90 Net cash flows from operating activities $ 100.00 MACROSOFT CORPORATION Income Statement For the Year Ended December 31, 2021 ($ in millions) Revenues and gains: Sales $ 328.00 Gain on sale of cash equivalents 2.90 Gain on sale of investments 24.90 $ 355.80 Expenses and loss: Cost of goods sold $ 129.00 Salaries 40.90 Interest expense 12.90 Insurance 20.90 Depreciation 10.90 Patent amortization 4.90 Loss on sale of land 6.90 226.40 Income before tax 129.40 Income tax expense 64.70 Net income $ 64.70 Reconciliation of Net Income to Net Cash Flows from Operating Activities ($ in millions) Net income $ 64.70 Adjustments for noncash effects: Depreciation expense Patent amortization expense 10.90 4.90 Loss on sale of land 6.90 Gain on sale of investment (24.90) 6.90 Decrease in accounts receivable Increase in inventory Increase in accounts payable (12.90) 18.90 Decrease in bond discount 1.90 Increase in salaries payable Decrease in prepaid insurance Increase in income tax payable 6.90 4.90 10.90 Net cash flows from operating activities $ 100.00
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Answer rating: 100% (QA)
Cash flows from operating activities Direct Method Cash flow from Operating Activities in millions Cash Received from customers WN 1 3349 Cash increas... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
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