The income statement and the cash flows from the operating activities section of the statement of cash flows are provided below for Syntric Company. The merchandise inventory account balance neither increased nor decreased during the reporting period. Syntric had no liability for insurance, deferred income taxes, or interest at any time during the period. SYNTRIC COMPANY Income Statement For the Year Ended December 31, 2018 ($ in Bees) Sales $ 300.4 Cost of goods sold (188.4) Gross margin 112. Salaries expense $27.8 Insurance expense 18.5 Depreciation expense 10.5 Depletion expense 5.2 Bond interest expense 12.1 (74.1) Gains and losses: Gain on sale of equipment 16.5 Loss on sale of land (7.2) Income before tax 47.2 Income tax expense (23.6) Net income 23.6 Cash Flows from Operating Activities: Cash received from customers $ 238.0 Cash paid to suppliers (176.0) ash paid to suppliers ash paid to employees ash paid for interest ash paid for insurance ash paid for income taxes let cash flows from operating ctivities (176.0) (23.0) (10.3) (14.2) (12.2) $ 2.3 $ 23.6 Cash flows from operating activities: Net income Adjustments for noncash effects: Depreciation expense Gain on sale of equipment Loss on sale of land 10.5 (16.5) 7.2 ................... (12.4) (4.8) Changes in operating assets and liabilities: Increase in accounts receivable Increase in accounts payable Increase in salaries payable Decrease in prepaid insurance Decrease in bond discount Increase in income tax payable Net cash flows from operating activities 7.6 $ 23.6 Cash flows from operating activities: Net income Adjustments for noncash effects: Depreciation expense Gain on sale of equipment Loss on sale of land 10.5 (16.5) 7.2 T (12.4) (4.8) ces Changes in operating assets and liabilities: Increase in accounts receivable Increase in accounts payable Increase in salaries payable Decrease in prepaid insurance Decrease in bond discount Increase in income tax payable Net cash flows from operating activities 7.6