The income statement and a schedule reconciling cash flows from operating activities to net
income are provided below ($ in millions) for Mike Roe Computers. 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.) Cash received from customers during
the reporting period. $ Cash paid to suppliers of goods during the reporting period. $ Cash paid
to employees during the reporting period. $ Cash paid for interest during the reporting period. $
Cash paid for insurance during the reporting period. $ Cash paid for income taxes during the
reporting period. $ 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.) Cash Flows From
Operating Activities: $ Net cash flows from opera
Solution
1 Calculate amount each of following $ a Cash recevied from customer =151.20+5.60 156.8 b
Cash paid to supplier =90.60-9.60 81 c Cash paid to employees =21.20-3.60 17.6 d Cash paid for
interest =6.60+3.30 9.9 e Cash paid for insurance =13.20-2.60 10.6 f Cash paid for income taxes
=11.50-6.60 4.9 2 Cash flow from operating activities (Direct method) $ a Cash recevied from
customer =151.20+5.60 156.8 b Cash paid to supplier =90.60-9.60 81 c Cash paid to employees
=21.20-3.60 17.6 d Cash paid for interest =6.60+3.30 9.9 e Cash paid for insurance =13.20-2.60
10.6 f Cash paid for income taxes =11.50-6.60 4.9 Net Cash flow from operating activities($)
32.8