The income statement and a schedule reconciling cash flows from operating activities...
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Accounting
The income statement and a schedule reconciling cash flows from operating activities to net income are provided below ($ in millions) for Mike Roe Computers.
MIKE ROE COMPUTERS Income Statement For the Year Ended December 31, 2013
Sales
$
151.20
Cost of goods sold
(90.60)
Gross margin
60.60
Salaries expense
$
21.20
Insurance expense
13.20
Depreciation expense
5.60
Interest expense
6.60
(46.60)
Gains and losses:
Gain on sale of equipment
13.20
Loss on sale of land
(4.20)
Income before tax
23.00
Income tax expense
(11.50)
Net income
$
11.50
Reconciliation of Net Income to Net Cash Flows from Operating Activities
Net income
$
11.50
Adjustments for noncash effects:
Decrease in accounts receivable
5.60
Gain on sale of equipment
(13.20)
Increase in inventory
(6.60)
Increase in accounts payable
9.60
Increase in salaries payable
3.60
Depreciation expense
5.60
Decrease in bond discount
3.30
Decrease in prepaid insurance
2.60
Loss on sale of land
4.20
Increase in income tax payable
6.60
Net cash flows from operating activities
$
32.80
Required:
1.
Calculate each of the following amounts for Mike Roe Computers: (Enter your answers in millions of dollars rounded to 2 decimal places.Input all amounts as positive values.)
($ in millions)
a.
Cash received from customers during the reporting period.
$
b.
Cash paid to suppliers of goods during the reporting period.
$
c.
Cash paid to employees during the reporting period.
$
d.
Cash paid for interest during the reporting period.
$
e.
Cash paid for insurance during the reporting period.
$
f.
Cash paid for income taxes during the reporting period.
$
2.
Prepare the cash flows from operating activities section of the statement of cash flows (direct method).(Enter your answers in millions of dollars rounded to 2 decimal places.Amounts to be deducted should be indicated with a minus sign.)
($ in millions)
Cash Flows From Operating Activities:
(Click to select)Cash paid to employeesTo bondholdersCash paid for income taxesCash paid for insuranceCash received from customersFor depreciation expenseCash paid to suppliersCash paid for interest
$
(Click to select)For depreciation expenseCash paid for interestCash paid for insuranceCash paid to suppliersCash paid for income taxesTo bondholdersCash received from customersCash paid to employees
(Click to select)Cash paid for insuranceCash received from customersCash paid to employeesCash paid to suppliersFor depreciation expenseCash paid for income taxesCash paid for interestTo bondholders
(Click to select)Cash paid for interestCash received from customersCash paid for income taxesTo bondholdersFor depreciation expenseCash paid to employeesCash paid to suppliersCash paid for insurance
(Click to select)To bondholdersCash received from customersCash paid for income taxesCash paid to suppliersCash paid to employeesCash paid for interestFor depreciation expenseCash paid for insurance
(Click to select)Cash paid to employeesCash received from customersCash paid to suppliersCash paid for interestCash paid for income taxesTo bondholdersFor depreciation expenseCash paid for insurance
Net cash flows from operating activities
$
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