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.) 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.) Solution Answers: 1. Cash received from customers during the reporting period = = Sales + Decrease (or – increase) in Accounts Receivables = 148.40 + 4.2 = $152.60 Million 2. Cash paid to suppliers of goods during the reporting period. = Cost of goods sold +increase (or – decrease) in inventory ) + Decrease (or – increase) in accounts Payable = 89.20 +5.20-8.20 = $86.20 Million 3. Cash paid to employees during the reporting period. = Salaries expense + Decrease (or – increase) in salaries Payable =18.40 -2.2 = $16.20 Million 4. Cash paid for interest during the reporting period. = Interest expense + Decrease (or – increase) in inerest Payable + Decrease in bond discount = 5.20 + 2.60 = $7.80 Million .

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.)
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.)
The income statement and a schedule reconciling cash flows from operating activities to net
income are provided below ($ in millions) for Mike Roe Computers.
Solution
Answers:
1. Cash received from customers during the reporting period =
= Sales + Decrease (or – increase) in Accounts Receivables
= 148.40 + 4.2
= $152.60 Million
2. Cash paid to suppliers of goods during the reporting period. = Cost of goods sold +increase (or
– decrease) in inventory ) + Decrease (or – increase) in accounts Payable
= 89.20 +5.20-8.20
= $86.20 Million
3. Cash paid to employees during the reporting period. = Salaries expense + Decrease (or –
increase) in salaries Payable
=18.40 -2.2
= $16.20 Million

2. 4. Cash paid for interest during the reporting period. = Interest expense + Decrease (or –
increase) in inerest Payable + Decrease in bond discount
= 5.20 + 2.60
= $7.80 Million