The accounting records of ERC Company provided the data below.

Net income $85,000 Depreciation expense $5,000 Increase in inventory $2,500 Increase in salaries payable $800

Decrease in accounts receivable $4,000

Amortization of patent $300

Amortization of premium on bonds $2,000 Decrease in accounts payable $5,000

Cash dividends $12,000

Prepare a reconciliation of net income to net cash flows from operating activities