Exercise 21-17 Indirect method; reconciliation of net income to net cash flows from operating activities [LO21-4]

The accounting records of EZ Company provided the data below.

Net income	$	54,750
Depreciation expense		9,250
Increase in inventory		2,625
Decrease in salaries payable		1,725
Decrease in accounts receivable		3,500
Amortization of patent		675
Amortization of premium on bonds		2,975
Increase in accounts payable		6,250
Cash dividends		14,500

Prepare a reconciliation of net income to net cash flows from operating activities. (Amounts to be deducted should be indicated with a minus sign.)