The accounting records of Baddour Company provided the data below. Prepare a reconciliation of net income to

Question:

The accounting records of Baddour Company provided the data below. Prepare a reconciliation of net income to net cash flows from operating activities.

Net loss ............ $ 5,000

Depreciation expense ....... 6,000

Increase in salaries payable ..... 500

Decrease in accounts receivable ... 2,000

Increase in inventory ........ 2,300

Amortization of patent ........ 300

Reduction in discount on bonds ... 200

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...