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exercise 21-23 Cash flows from operating activities (direct method) [LO21-3]

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

MYRIAD PRODUCTS COMPANY Income Statement For the Year Ended December 31, 2016 ($ in millions)
Sales				$	980
Cost of goods sold					(343	)
Gross margin					637
Salaries expense	$	170
Depreciation expense		106
Patent amortization expense		5
Interest expense		46
Loss on sale of land		4			(331	)
Income before taxes					306
Income tax expense					(153	)
Net Income				$	153

MYRIAD PRODUCTS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2016 and 2015 ($ in millions)
	Year
	2016			2015			Change
Cash	$	150		$	138		$	12
Accounts receivable		269			289			(20	)
Inventory		469			488			(19	)
Accounts payable		223			210			13
Salaries payable		111			124			(13	)
Interest payable		69			58			11
Income taxes payable		60			48			12

Required:

Prepare the cash flows from operating activities section of the statement of cash flows for Myriad Products Company using the direct method. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

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