The accounting records of Joey Co. provided the data below: Prepare a reconciliation of net income to net cash flows from operating activities:

Net Income $50,000

Depreciation Expense 7,000

Increase in Inventory 1,500

Decrease in Salaries payable 800

Decrease in Accounts Receivable 2,000

Amortization of Patent 500

Amortization of Premium of Bonds 1,000

Increase in Accounts Payable 4,000

Cash Dividends 12,000