Exercise $21-20($Algo$)$ Reconciliation of net cash flows from operating activities to net income $[$LO$21-3,21-4]$

$10$

The income statement and the cash flows from 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 liablitity for Insurance, deferred Income taxes, or Interest at any time during the perlod.

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SYNTRIC COMPANY $\backslash \backslash$

Income statement $\backslash \backslash$

For the Year Ended December $31,2024\backslash \backslash$

$(\backslash$$ in thousands$)$

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$\backslash$hline Sales & & $\backslash$$ $276\mathrm{.}8\backslash \backslash$

$\backslash$hline cost of goods sold & & $(182\mathrm{.}0)\backslash \backslash$

$\backslash$hline Gross margin & & $94\mathrm{.}8\backslash \backslash$

$\backslash$hline Salaries expense & $\backslash$$ $25\mathrm{.}4$ & $\backslash \backslash$

$\backslash$hline Insurance expense & $18\mathrm{.}1$ & $\backslash \backslash$

$\backslash$hline Depreciation expense & $8\mathrm{.}5$ & $\backslash \backslash$

$\backslash$hline Depletion expense & $4\mathrm{.}5$ & $\backslash \backslash$

$\backslash$hline Interest expense & $11\mathrm{.}7$ & $(68\mathrm{.}2)\backslash \backslash$

$\backslash$hline Gains and losses: & & $\backslash \backslash$

$\backslash$hline Gain on sale of equipment & & $26\mathrm{.}0\backslash \backslash$

$\backslash$hline loss on sale of land & & $(7\mathrm{.}0)\backslash \backslash$

$\backslash$hline Income before tax & & $45\mathrm{.}6\backslash \backslash$

$\backslash$hline Income tax expense & & $(22\mathrm{.}8)\backslash \backslash$

$\backslash$hline Net income & & $\backslash$$$22\mathrm{.}8\backslash \backslash$

$\backslash$hline Cash Flows from Operating Activities: & & $\backslash \backslash$

$\backslash$hline Cash received from customers & & $\backslash$$ $255\mathrm{.}0\backslash \backslash$

$\backslash$hline Cash paid to suppliers & & $(170\mathrm{.}0)\backslash \backslash$

$\backslash$hline Cash paid to employees & & $(21\mathrm{.}0)\backslash \backslash$

$\backslash$hline Cash paid for interest & & $(10\mathrm{.}1)\backslash \backslash$

$\backslash$hline Cash paid for insurance & & $(14\mathrm{.}0)\backslash \backslash$

$\backslash$hline Cash paid for income tax & & $(11\mathrm{.}8)\backslash \backslash$

$\backslash$hline Net cash flows from operating activities & & $\backslash$$ $28\mathrm{.}1\backslash \backslash$

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Required:

Prepare a schedule to reconcile net Income to net cash flows from operating activitles.

Note: Enter your answers in thousands rounded to $1$ decimal place $($l$.$e$.,5,500$ should be entered as $5\mathrm{.}5).$ Cash outflows should be Indicated with a minus sign.

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RECONCILIATION OF NET INCOME TO

NET CASH FLOWS FROM OPERATING ACTIVITIES