Portions of the financial statements for Hawkeye Company are provided below. HAWKEYE COMPANY Income Statement For the Year Ended December 31, 2024 ($ in millions) Sales Cost of goods sold Gross margin Operating expenses: Salaries Depreciation Loss on sale of land Total operating expenses Operating income Other income (expense): Gain on sale of cash equivalents Interest expense Income before tax Income tax expense Net income HAWKEYE COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2024 and 2023 ($ in millions) Year Cash Accounts receivable Inventory Accounts payable Salaries payable Interest payable Income tax payable 2024 $242 390 $ 227 185 12 890 225 185 65 95 2023 $215 411 865 264 198 55 114 $ 850 325 525 424 101 4 (35) 70 35 $ 35 Change $ 27 (21) 25 (39) (13) 10 (19) Pronare the cash flows from
Portions of the financial statements for Hawkeye Company are provided below. HAWKEYE COMPANY Income Statement For the Year Ended December 31, 2024 ($ in millions) Sales Cost of goods sold Gross margin Operating expenses: Salaries Depreciation Loss on sale of land Total operating expenses Operating income Other income (expense): Gain on sale of cash equivalents Interest expense Income before tax Income tax expense Net income HAWKEYE COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2024 and 2023 ($ in millions) Year Cash Accounts receivable Inventory Accounts payable Salaries payable Interest payable Income tax payable 2024 $242 390 $ 227 185 12 890 225 185 65 95 2023 $215 411 865 264 198 55 114 $ 850 325 525 424 101 4 (35) 70 35 $ 35 Change $ 27 (21) 25 (39) (13) 10 (19) Pronare the cash flows from
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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
Transcribed Image Text:Portions of the financial statements for Hawkeye Company are provided below.
HAWKEYE COMPANY
Income Statement
For the Year Ended December 31, 2024
($ in millions)
Sales
Cost of goods sold
Gross margin
Operating expenses:
Salaries
Depreciation
Loss on sale of land
Total operating expenses
Operating income
Other income (expense):
Gain on sale of cash equivalents
Interest expense
Income before tax
Income tax expense
Net income
HAWKEYE COMPANY
Selected Accounts from Comparative Balance Sheets.
December 31, 2024 and 2023
($ in millions)
Year
Cash
Accounts receivable
Inventory
Accounts payable
Salaries payable
Interest payable
Income tax payable
2024
$ 242
390
$ 227
185
12
890
225
185
65
95
2023
$215
411
865
264
198
55
114
$ 850
325
525
424
101
4
(35)
70
35
$ 35
Change
$ 27
(21)
25
(39)
(13)
10
(19)
2. Prepare the cash flows from
operating activities section of the
statement of cash flows for Hawkeye
Company using the indirect method.
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