Question $1$

$25$ pts

ATEC Informatique

Income Statement For the Year Ended December $31,2021$

$($ $ in millions$)$

Revenues and gains:

$\backslash$table$[[$Sales$,$$ $300\mathrm{.}00,],[$Gain on sale of cash equivalents,$1\mathrm{.}50,],[$Gain on sale of investments,$23\mathrm{.}50,$$ $325\mathrm{.}00],[$Expenses and loss:$],[$Cost of goods sold,$115\mathrm{.}00,],[$Salaries$,39\mathrm{.}50,],[$Interest expense,$11\mathrm{.}50,],[$Insurance$,19\mathrm{.}50,],[$Depreciation$,9\mathrm{.}50,*],[$Patent amortization,$3\mathrm{.}50,],[$Loss on sale of land,$5\mathrm{.}50,204\mathrm{.}00],[$Income before tax,,$121\mathrm{.}00],[$Income tax expense,,$60\mathrm{.}50],[$Net income,,$ $60\mathrm{.}50]]$to Net Cash Flows from Operating Activities $($$ in millions$)$

from Operating Activities

$($$ in millions$)$

Net income

$ $60\mathrm{.}50$

Adjustments for noncash effects:

Depreciation expense

$9\mathrm{.}50$

Patent amortization expense

$3\mathrm{.}50$

Loss on sale of land

$5\mathrm{.}50$

Gain on sale of investment

$(23\mathrm{.}50)$

Decrease in accounts receivable

$5\mathrm{.}50$

Increase in inventory

$(11\mathrm{.}50)$

Increase in accounts payable

$17\mathrm{.}50$

Decrease in bond discount

$0\mathrm{.}50$

Increase in salaries payable

$5\mathrm{.}50$

Decrease in prepaid insurance

$3\mathrm{.}50$

Increase in income tax payable

$9\mathrm{.}50$

Net cash flows from operating activities

$ $86\mathrm{.}00$Cash Flow from Operating Activities

$\backslash$table$[[$from customers,,$],[$Cash increase from sale of cash equivalents,$,],[$Cash paid to suppliers,,$],[$Cash paid to employees,,$],[$Cash paid for interest,$,],[$Cash paid for insurance,$,],[$Cash paid for income taxes,$,],[$Depreciation expense,,$],[$Loss on sale of land,,$],[$Patent amortization expense,$,]]$