Portions of the financial statements for Myriad Products are provided below.MYRIAD PRODUCTS COMPANYIncome StatementFor the Year Ended December 31, 2018($ in millions)Sales$ 840294Cost of goods soldGross marginSalaries expenseDepreciation expensePatent amortization expense546$13592Interest expense32Loss on sale of land4268Income before taxes278Income tax expense139Net Income$ 139MYRIAD PRODUCTS COMPANYSelected Accounts from Comparative Balance SheetsDecember 31, 2018 and 2017($ in millions)Year20182017Change$ 5Cash$129$124255268(13)(12)Accounts receivableInventory462474Accounts payableSalaries payableInterest payableIncome taxes payable188182104110( 6)484443934Required:Prepare the cash flows from operating activities section of the statement of cash flows for Myriad Products Company using the indirectmethod. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10.). Amounts to be deducted should be indicatedwith a minus sign.)($ in millions)Cash Flows from Operating Activities:Adjustments for noncash effects:Changes in operating assets and liabilities:Net cash flows from operating activities$

1. Depreciation, patent amortization, loss on sale of land are non cash expenses . So, added…

Answered: Portions of the financial statements…

Business

Accounting

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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
$ 840
294
Cost of goods sold
Gross margin
Salaries expense
Depreciation expense
Patent amortization expense
546
$135
92
Interest expense
32
Loss on sale of land
4
268
Income before taxes
278
Income tax expense
139
Net Income
$ 139
MYRIAD PRODUCTS COMPANY
Selected Accounts from Comparative Balance Sheets
December 31, 2018 and 2017
($ in millions)
Year
2018
2017
Change
$ 5
Cash
$129
$124
255
268
(13)
(12)
Accounts receivable
Inventory
462
474
Accounts payable
Salaries payable
Interest payable
Income taxes payable
188
182
104
110
( 6)
48
44
4
39
34
Required:
Prepare the cash flows from operating activities section of the statement of cash flows for Myriad Products Company using the indirect
method. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10.). Amounts to be deducted should be indicated
with a minus sign.)
($ in millions)
Cash Flows from Operating Activities:
Adjustments for noncash effects:
Changes in operating assets and liabilities:
Net cash flows from operating activities
$

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