Portions of the financial statements for Myriad Products are provided below. MYRIAD PRODUCTS COMPANYIncome StatementFor the Year Ended December 31, 2021($ in millions) Sales 780Cost of goods sold 273Gross margin 507Salaries expense120 Depreciation expense86 Amortization expense5 Interest expense26 Loss on sale of land4241Income before taxes 266Income tax expense 133Net Income 133 MYRIAD PRODUCTS COMPANYSelected Accounts from Comparative Balance SheetsDecember 31, 2021 and 2020($ in millions) Year 20212020ChangeCash$1201182Accounts receivable 249259(10)Inventory 449468(19)Accounts payable 18517015Salaries payable 92104(12)Interest payable 523814Income tax payable 422814 Required:Prepare the cash flows from the operating activities section of the statement of cash flows for Myriad Products Company using the indirect method. Cash Flows from Operating Activities:Adjustments for noncash effects:Changes in operating assets and liabilities:Net cash flows from operating activities($ in millions)$0

The cash flow statement is prepared to record the cash flow from various activities during the…

Answered: Portions of the financial statements…

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

Chapter14: Statement Of Cash Flows

Section: Chapter Questions

Problem 10DQ

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Portions of the financial statements for Myriad Products are provided below.

MYRIAD PRODUCTS COMPANY Income Statement For the Year Ended December 31, 2021 ($ in millions)
Sales		780
Cost of goods sold		273
Gross margin		507
Salaries expense	120
Depreciation expense	86
Amortization expense	5
Interest expense	26
Loss on sale of land	4	241
Income before taxes		266
Income tax expense		133
Net Income		133

MYRIAD PRODUCTS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions)
	Year
		2021	2020	Change
Cash	$	120	118	2
Accounts receivable		249	259	(10)
Inventory		449	468	(19)
Accounts payable		185	170	15
Salaries payable		92	104	(12)
Interest payable		52	38	14
Income tax payable		42	28	14

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

Cash Flows from Operating Activities:
Adjustments for noncash effects:
Changes in operating assets and liabilities:
Net cash flows from operating activities
($ in millions)
$
0

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