The income statement and the cash flows from the operating activities section of the statement of cash flows are provided below for Syntric Company. The merchandise inventory account balance neither increased nor decreased during the reporting period. Syntric had no liability for insurance, deferred income taxes at any time during the period.

Required:Prepare a schedule to reconcile net income to net cash flows from operating activities.

Transcribed Image Text:

SYNTRIC COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands) $ 312 Sales Cost of goods sold (188) Gross margin 124 $41 Salaries expense Insurance expense 22 Depreciation expense Depletion expense 11 Interest expense 10 (89) Gains and losses: Gain on sale of equipment 25 Loss on sale of land (8) Income before tax 52 Income tax expense (26) $ 26 Net income Cash Flows from Operating Activities: $ 258 Cash received from customers Cash paid to suppliers Cash paid to employees (175) (37) Cash paid for interest Cash paid for insurance (9) (16) (14) Cash paid for income tax Net cash flows from operating activities