Possible entries:

Amortization of patent

Cash dividends

Decrease in accounts payable

Decrease in accounts receivable

Decrease in bond premium

Decrease in inventory

Decrease in salaries payable

Depreciation expense

Increase in accounts payable

Increase in accounts receivable

Increase in bond premium

Increase in inventory

Increase in salaries payable

The two problems that I'm having is that 1) part of my problem down below is INCORRECT and 2) my problem is incomplete (there should be more entries (not sure how many)).

The accounting records of EZ Company provided the data below. Net income Depreciation expense Increase in inventory Decrease in salaries payable Decrease in accounts receivable Amortization of patent Amortization of premium on bonds Increase in accounts payable Cash dividends paid $58,550 11,050 3,525 2,465 4,700 815 4,555 8,050 16,500 Prepare a reconciliation of net income to net cash flows from operating activities. (Amounts to be deducted should be indicated with a minus sign.) Answer is not complete. RECONCILIATION OF NET INCOME TO NET CASH FLOWS FROM OPERATING ACTIVITIES Cash flows from operating activities: Net income $ 58,550 Adjustments for noncash effects: Depreciation expense 11,050 Amortization of patent 815 Increase in bond premium 4,555 Changes in operating assets and liabilities: Decrease in accounts receivable 4,700 Increase in inventory (3,525) Increase in accounts payable 8,050 Decrease in salaries payable 2,465) Net cash flows from operating activities $ 81,730