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.
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, 2024 | ||
| ($ in millions) | ||
| Sales | $ 700 | |
|---|---|---|
| Cost of goods sold | 245 | |
| Gross margin | 455 | |
| Salaries expense | $ 100 | |
| 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 |
|||
| December 31, 2024 and 2023 | |||
| ($ in millions) | |||
| Year | Change | ||
|---|---|---|---|
| 2024 | 2023 | ||
| Cash | $ 117 | $ 110 | $ 7 |
| 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
Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10).
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