The data given below were provided by the accounting records of Darby Company. Prepare the reconciliation of

Question:

The data given below were provided by the accounting records of Darby Company. Prepare the reconciliation of net income with cash flow from operations for inclusion in the SCF, indirect method.
Net income (accrual basis) $ 40,000Depreciation expense $ 8,000Decrease in wages payable $ 1,200Decrease in trade 1,800Increase in merchandise inventory $ 2,500Amortization of patent $ 100Increase in long-term liabilities $ 10,000Sale of capital stock for cash $ 25,000Amortization of premium on bonds payable $ increase $ 4,000Stock issued $10,000
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