Question: The accounting records of EZ Company provided the data below.
|
Net income
|
$50,000
|
|
Depreciation expense
|
7,000
|
|
Increase in inventory
|
1,500
|
|
Decrease in salaries payable
|
800
|
|
Decrease in accounts receivable
|
2,000
|
|
Amortization of patent
|
500
|
|
Amortization of premium on bonds
|
1,000
|
|
Increase in accounts payable
|
4,000
|
|
Cash dividends
|
12,000
|
Prepare a reconciliation of net income to net cash flows from operating activities.