Response to the following problem:
Indirect method; reconciliation of net income to net cash flows from operating activities
The accounting records of Hampton Company provided the data below ($ in 000s).
Net income $17,300
Depreciation expense 7,800
Increase in accounts receivable 4,000
Decrease in inventory 5,500
Decrease in prepaid insurance 1,200
Decrease in salaries payable 2,700
Increase in interest payable 800
Required:
Prepare a reconciliation of net income to net cash flows from operating activities.