Portions of the financial statements for Myriad Products are provided below: MYRIAD PRODUCTS COMPANY Income Statement For the Year Ended December 31, 2024 ($ in millions) Sales $ 700 Cost of goods sold 245 Gross margin 455 Salaries expense $ 100 Depreciation expense 78 Amortization expense 5 Interest expense 18 Loss on sale of land 4 205 Income before taxes 250 Income tax expense 125 Net Income $ 125 MYRIAD PRODUCTS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2024 and 2023 ($ in millions) Year Change 2024 2023 Cash $ 117 $ 110 $ 7 Accounts receivable 230 247 (17) Inventory 445 460 (15) Accounts payable 165 154 11 Salaries payable 85 96 (11) Interest payable 40 30 10 Income tax payable 30 20 10 Required: Prepare the cash flows from the operating activities section of the statement of cash flows for Myriad Products Company using the indirect method. Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Cash outflows should be indicated with a minus sign.

Portions of the financial statements for Myriad Products are provided below: MYRIAD PRODUCTS COMPANY Income Statement For the Year Ended December 31, 2024 ($ in millions) Sales $ 700 Cost of goods sold 245 Gross margin 455 Salaries expense $ 100 Depreciation expense 78 Amortization expense 5 Interest expense 18 Loss on sale of land 4 205 Income before taxes 250 Income tax expense 125 Net Income $ 125 MYRIAD PRODUCTS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2024 and 2023 ($ in millions) Year Change 2024 2023 Cash $ 117 $ 110 $ 7 Accounts receivable 230 247 (17) Inventory 445 460 (15) Accounts payable 165 154 11 Salaries payable 85 96 (11) Interest payable 40 30 10 Income tax payable 30 20 10 Required: Prepare the cash flows from the operating activities section of the statement of cash flows for Myriad Products Company using the indirect method. Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Cash outflows should be indicated with a minus sign.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 19BEA

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MYRIAD PRODUCTS COMPANY
Income Statement
For the Year Ended December 31, 2024
($ in millions)
Sales		$ 700
Cost of goods sold		245
Gross margin		455
Salaries expense	$ 100
Depreciation expense	78
Amortization expense	5
Interest expense	18
Loss on sale of land	4	205
Income before taxes		250
Income tax expense		125
Net Income		$ 125

MYRIAD PRODUCTS COMPANY
Selected Accounts from Comparative Balance Sheets
December 31, 2024 and 2023
($ in millions)
	Year	Change
2024	2023
Cash	$ 117	$ 110	$ 7
Accounts receivable	230	247	(17)
Inventory	445	460	(15)
Accounts payable	165	154	11
Salaries payable	85	96	(11)
Interest payable	40	30	10
Income tax payable	30	20	10

Required:

Prepare the cash flows from the operating activities section of the statement of cash flows for Myriad Products Company using the indirect method.

Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Cash outflows should be indicated with a minus sign.

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