Question 1.

The accounting records of Baddour Company provided the data below. Net loss $4,680 Depreciation expense 6,100 Increase in salaries payable 460 Decrease in accounts receivable 1,900 Increase in inventory 2,350 Amortization of patent 340 Reduction in discount on bonds 240 Prepare a reconciliation of net income to net cash flows from operating activities. (Amounts to be deducted should be indicated with a minus sign.) Cash flows from operating activities: _ Adjustments for noncash effects: _ Changes in operating assets and liabilities: _ Net cash ows from operating activities