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 $58, 550 Depreciation expense 11, 050 Increase in inventory 3, 525 Decrease in salaries payable 2, 465 Decrease in accounts receivable 4, 700 Amortization of patent 815 Amortization of premium on bonds 4,555 Increase in accounts payable 8, 050 Cash dividends paid 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.) x 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 V 11,050 Amortization of patent 815 Increase in bond premium X 4,555 X 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