60.1K

Verified Solution

Link Copied!

I have no idea on how to solve for the cash paid for interest

Portions of the financial statements for Myriad Products are provided below. $ 620 217 403 MYRIAD PRODUCTS COMPANY Income Statement For the Year Ended December 31, 2021 ($ in millions) Sales Cost of goods sold Gross margin Salaries expense $ 85 Depreciation expense 72 Amortization expense 5 Interest expense 12 Loss on sale of land 3 Income before taxes Income tax expense | 177 226 113 Net Income $ 113 MYRIAD PRODUCTS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in millions) Year 2021 2020 Change Cash $108 $104 $ 4 Accounts receivable 224 238 (14) Inventory 442 454 (12) Accounts payable 150 142 8 Salaries payable 82 90 (8) Interest payable 31 24 7 Income tax payable 21 14 7 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).) X Answer is not complete. ($ in millions) $ 634 Cash Flows from Operating Activities: Cash received from customers Cash paid to suppliers Cash paid to employees Cash paid for income taxes Cash paid for interest (197) (93) (106) Net cash flows from operating activities $ 238

Answer & Explanation Solved by verified expert

See Answer