Exercise 21-20 (Algo) Reconciliation of net cash flows from operating activities to net income (L021-3, 21-4] The income statement and the cash flows from the operating activities section of the statement of cash flows are provided below for Syntric Company. The merchandise inventory account balance neither increased nor decreased during the reporting period. Syntric had no liability for insurance, deferred income taxes, or interest at any time during the period. SYNTRIC COMPANYIncome Statement For the Year Ended December 31, 2021 ($ in thousands)Sales $ 280.2 Cost of goods sold (175.4) Gross margin 104.8Salaries expense $38.6 Insurance expense 17.5 Depreciation expense 5.5 Depletion expense 4.2 Interest expense 11.1 (76.9)Gains and losses: Gain on sale of equipment 22.0 Loss on sale of land (6.7)Income before tax 43.2Income tax expense (21.6) $ 6.3 Net income 21.6 $ Cash Flows from Operating Activities:Cash received from customers $ 240.0 Cash paid to suppliers (164.0) Cash paid to employees (35.0) Cash paid for interest (9.8) Cash paid for insurance (13.7) Cash paid for income tax (11.2) Net cash flows from $ 6.3operating activities
Required: Prepare a schedule to reconcile net income to net cash flows from operating activities. (Enter your answers in thousands rounded to 1 decimal place (i.e., 5,500 should be entered as 5.5). Amounts to be deducted should be indicated with a minus sign.)
