E 21-19, E 21-20

The following schedule relates the income statement with cash flows from operating activities, derived by both the direct and indirect methods, in the format illustrated by Illustration 21-11 in the chapter. The amounts for income statement elements are missing. E 21-19 Relationship between the income statement and cash flows from operating activities (direct method and indirect method) LO21-3 LO21-4 Income Statement E2 Cas fror acti me fror sta cas frol act me $ 612 Sales Cost of goods sold Cash Flows from Operating Activities Indirect Method Direct Method Net Income $ ? Adjustments: Decrease in accounts receivable 12 Cash received from customers Increase in Inventory (24) Decrease in accounts payable (36) Cash paid to suppliers Increase in salaries payable 12 Cash paid to employees Depreciation expense 18 (Not reported-no cash effect) Decrease in prepaid Insurance 18 Cash paid for insurance Loss on sale of land 12 (Not reported-no cash effect) Increase in Income tax payable 12 Cash paid for income taxes Net cash flows from operating activities $ 60 Net cash flows from operating activities $? ? (420) (66) Salaries expense Depreciation expense Insurance expense Loss on sale of land Income tax expense Net Income ? ? ? ? ? (24) (42) $ 60 $? Required: Deduce the missing amounts and prepare the income statement. E 21-20 Reconciliation of net cash flows from operating activities to net income LO21-3, LO21-4 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 at any time during the period