Portions of the financial statements for Myriad Products are provided below. MYRIAD PRODUCTS COMPANY Income Statement For
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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 | $ | 860 | ||||
Cost of goods sold | (301 | ) | ||||
Gross margin | 559 | |||||
Salaries expense | $ | 140 | ||||
Depreciation expense | 94 | |||||
Patent amortization expense | 5 | |||||
Interest expense | 34 | |||||
Loss on sale of land | 4 | (277 | ) | |||
Income before taxes | 282 | |||||
Income tax expense | (141 | ) | ||||
Net Income | $ | 141 | ||||
MYRIAD PRODUCTS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2016 and 2015 ($ in millions) | |||||||||
Year | |||||||||
2016 | 2015 | Change | |||||||
Cash | $ | 132 | $ | 126 | $ | 6 | |||
Accounts receivable | 257 | 271 | (14 | ) | |||||
Inventory | 463 | 476 | (13 | ) | |||||
Accounts payable | 193 | 186 | 7 | ||||||
Salaries payable | 105 | 112 | (7 | ) | |||||
Interest payable | 51 | 46 | 5 | ||||||
Income taxes payable | 42 | 36 | 6 | ||||||
Required: |
Prepare the cash flows from operating activities section of the statement of cash flows for Myriad Products Company using the direct method. |
Related Book For
Intermediate Accounting
ISBN: 978-0078025839
9th edition
Authors: J. David Spiceland, James Sepe , Mark Nelson , Wayne Thomas
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