Question

The accounting records of EZ Company provided the data below Net income Depreciation expense Increase in inventory Decrease in salaries payable Decrease in accounts receivable Amortization of patent Amortization of premium on bonds Increase in accounts payable Cash dividends $52,850 8,350 2,175 1,355 2,900 605 2,185 5,350 13,500 Prepare a reconciliation of net income to net cash flows from operating activities. (Amounts to be deducted should be indicated with a minus sign.) Cash flows from operating activities Adjustments for noncash effects Changes in operating assets and liabilities. Net cash flows from operating activities

Answer 1

Check the explanation

Step-by-step explanation:

Cash flows from operating activities

Net income 52,850

Adjustments for non cash effects

depreciation expense 8,350

Amortization of patent 605

Amortization of premium on bonds -2,185

Changes in operating assets and liabilities

increase in inventory -2,175

decrease in salaries payable -1,355

Decrease in accounts receivable 2,900

increase in accounts payable 5,350

net Cash flow from operating activities 64,340