Net income $ 298,000   Depreciation expense   21,000   Increase in inventory   1,900   Increase in accounts receivable   1,380   Decrease in interest payable   1,580   Amortization of bond premium   2,800   Increase in accounts payable   6,800   Cash dividends paid   18,000        Required: Prepare a reconciliation of net income to net cash flows from operating activities. (Amounts to be deducted should be indicated with a minus sign.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The accounting records of Eastlake Industries provided the data below.
  

       
Net income $ 298,000  
Depreciation expense   21,000  
Increase in inventory   1,900  
Increase in accounts receivable   1,380  
Decrease in interest payable   1,580  
Amortization of bond premium   2,800  
Increase in accounts payable   6,800  
Cash dividends paid   18,000  
 

  
Required:
Prepare a reconciliation of net income to net cash flows from operating activities. (Amounts to be deducted should be indicated with a minus sign.)
  

 

 

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