Schedule that reconciles net income to net cash provided


Problem: Altobelli Auto Parts had a cash balance on December 31, 20X0, of $50,000. Its net income for 20X1 was $364,000. Its 20X1 transactions affecting income or cash were (in thousands):

1. Sales of $1,600, all on credit. Cash collections from customers, $1,450.

2. The cost of items sold, $850. Purchases of inventory totaled $900; inventory and accounts payable were affected accordingly.

3. Cash payments on trade accounts payable, $775.

4. Salaries and wages: accrued, $190; paid in cash, $180.

5. Depreciation, $45.

6. Interest expense, all paid in cash, $11.

7. Other expenses, all paid in cash, $100.

8. Income taxes accrued, $40; income taxes paid in cash, $30.

9. Bought plant and facilities for $335 cash.

10. Issued dept for $110 cash.

11. Paid cash dividends of $39.

Prepare a supporting schedule that reconciles net income to net cash provided by operating activities.

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Finance Basics: Schedule that reconciles net income to net cash provided
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