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

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

FINANCIAL ACCOUNTING
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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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 $
Transcribed Image Text: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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