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

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720

Portions of the financial statements for Myriad Products are provided below. Portions of the financial statements for Myriad Products are provided below. MYRIAD PRODUCTS COMPAN Income Statement For the Year Ended December 31, 2016 (S in millions) Sales Cost of goods sold 5 720 (252) 468 Gross margin Salaries expense Depreciation expense Patent amortization Interest expense Loss on sale of land 5105 80 expense 20 4 (214) Income before taxes 254 (127) Income tax expense Net Income 127 MYRIAD PRODUCTS COMPAN Selected Accounts from Comparative Balance Sheets December 31, 2016 and 2015 (S in millions) Year 2016 2015 Change 120 $112 $ Cash Accounts receivable Inventory Accounts payable Salaries payable Interest payable ncome taxes payable 250 462 158 98 32 (18) (16) 12 (12) 232 170 86 43 Required: Prepare the cash flows from 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.) oper ating activities section of the statement of cash flows for Myriad Products $ in millions) Cash Flows from Operating Activities: Adjustments for noncash effects Changes in operating assets and liabilities: Net cash flows from operating act ivities

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Answer:-

Myriad Products Cash Flow statement (Using Indirect Method) Particulars Amount $ in millions Net Income 127 Adjustment for non cash effects Patent amortization expense 5 Depreciation 80 Loss on sale of Land 4 Change in opreating assets & liabilities Decrease in Accounts Receiviable 18 Decrease in Inventory 16 Increase in Accounts payable 12 Increase in Interest payable 11 Decrease in Salary payable -12 Increase in Income tax payble payable 11 Net cash flow from opreating activities 272

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