Exercise 21-24 (Static) Cash flows from operating activities (indirect method) [LO21-4] 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   $ 660 Cost of goods sold   250 Gross margin   410 Salaries expense $ 110   Depreciation expense 90   Amortization expense 5   Interest expense 20   Loss on sale of land 3 228 Income before taxes   182 Income tax expense   91 Net Income   $ 91 MYRIAD PRODUCTS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2024 and 2023 ($ in millions)   Year Change 2024 2023 Cash $ 102 $ 100 $ 2 Accounts receivable 220 232 (12) Inventory 440 450 (10) Accounts payable 140 134 6 Salaries payable 80 86 (6) Interest payable 25 20 5 Income tax payable 15 10 5 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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Exercise 21-24 (Static) Cash flows from operating activities (indirect method) [LO21-4]

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   $ 660
Cost of goods sold   250
Gross margin   410
Salaries expense $ 110  
Depreciation expense 90  
Amortization expense 5  
Interest expense 20  
Loss on sale of land 3 228
Income before taxes   182
Income tax expense   91
Net Income   $ 91
MYRIAD PRODUCTS COMPANY
Selected Accounts from Comparative Balance Sheets
December 31, 2024 and 2023
($ in millions)
  Year Change
2024 2023
Cash $ 102 $ 100 $ 2
Accounts receivable 220 232 (12)
Inventory 440 450 (10)
Accounts payable 140 134 6
Salaries payable 80 86 (6)
Interest payable 25 20 5
Income tax payable 15 10 5

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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