Please prepare a schedule to reconcile net income to net cash flows from operating activities.

Question 1 20 Points SYNTEL COMPANY Income Statement For the Year Ended December 31, Year 1 ($ in 000s) Sales $354 Cost of goods sold (188) Gross margin 166 Salaries expense $38 Insurance expense 21 Depreciation expense 8 Depletion expense 3 Bond interest expense 12 (82) Gains and losses: Gain on sale of equipment 28 Loss on sale of land (6) Income before tax 106 Income tax expense (53) Net income $ 53 SYNTEL COMPANY Statement of Cash Flows (partial) For the Year Ended December 31, Year 1 ($ in 000s) Cash Flows from Operating Activities: Cash received from customers $ 238 Cash paid to suppliers (169) Cash paid to employees (30) Cash paid for interest (4) Cash paid for insurance (13 Cash paid for income taxes (5) Net cash flows from operating activities $ 17 com a | Prepare a schedule to reconcile net income to net cash flows from operating activities