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

$21-4]21-4]$

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 liability for insurance, deferred income taxes, or interest at any time during the period.

Required:

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