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

Answer:

Check the explanation

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