70.2K

Verified Solution

Link Copied!

The income statement and the cash flows from the 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.

SYNTRIC COMPANY Income Statement For the Year Ended December 31, 2018 ($ in 000s)
Sales				$	280.2
Cost of goods sold					(175.4	)
Gross margin					104.8
Salaries expense	$	38.6
Insurance expense		17.5
Depreciation expense		5.5
Depletion expense		4.2
Bond interest expense		11.1			(76.9	)
Gains and losses:
Gain on sale of equipment					22.0
Loss on sale of land					(6.7	)
Income before tax					43.2
Income tax expense					(21.6	)
Net income				$	21.6
Cash Flows from Operating Activities:
Cash received from customers				$	240.0
Cash paid to suppliers					(164.0	)
Cash paid to employees					(35.0	)
Cash paid for interest					(9.8	)
Cash paid for insurance					(13.7	)
Cash paid for income taxes					(11.2	)
Net cash flows from operating activities				$	6.3

Required: Prepare a schedule to reconcile net income to net cash flows from operating activities. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands rounded to 1 decimal place (i.e., 5,500 should be entered as 5.5).)

Answer & Explanation Solved by verified expert

See Answer