The income statement and a schedule reconciling cash flows from operating activi

Question

The income statement and a schedule reconciling cash flows from operating activities to net income are provided below for Macrosoft Corporation.

   

Prepare the cash flows from operating activities section of the statement of cash flows (direct method). (Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50). Amounts to be deducted should be indicated with a minus sign.)

MACROSOFT CORPORATION
Income Statement
For the Year Ended December 31, 2016
($ in millions)

Explanation / Answer

Cash flows from operating activities

MACROSOFT CORPORATION Cash Flow from Operating Activities For the Year Ended December 31, 2016 Direct Method ($ in millions)

Cash flows from operating activities

Sales    324.00 + Decrease in accounts receivable        6.70 Cash collection    330.70 Gain on sale of cash equivalents        2.70 Decrease in prepaid insurance        4.70 Less Cost of goods sold    127.00 + Increase in inventory      12.70 - Increase in accounts payable      18.70 Cash Payment for Purchases    121.00 Salaries      40.70 - Increase in salaries payable        6.70 Cash payment for salaries      34.00 Insurance      20.70 Income tax expense      64.10 - Increase in income tax payable      10.70 Cash payment for income tax      53.40 Interest expense      12.70 - Decrease in bond discount        1.70 Cash payment for interest      11.00 Net Cash flow from operating activities      98.00

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.