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. $ 273.2 (179.8) 93.4 (65.7) SYNTRIC COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands) Sales Cost of goods sold Gross margin Salaries expense $24.2 Insurance expense 17.9 Depreciation expense 7.5 Depletion expense 4.6 Interest expense 11.5 Gains and losses: Gain on sale of equipment Loss on sale of land Income before tax Income tax expense Net income Cash Flows from Operating Activities: Cash received from customers Cash paid to suppliers Cash paid to employees Cash paid for interest Cash paid for insurance Cash paid for income tax Net cash flows from operating activities 24.0 (6.9 44.8 (22.4) 22.4 $ $ 250.0 (168.0) (20.0) (10.0) (13.9) (11.6) $ 26.5 22.4 RECONCILIATION OF NET INCOME TO NET CASH FLOWS FROM OPERATING ACTIVITIES Cash flows from operating activities: Net income $ Adjustments for noncash effects: Depreciation expense Depletion expense Loss on sale of land Gain on sale of equipment 7.5 4.6 6.9 (24.0) Changes in operating assets and liabilities: Increase in accounts receivable Increase in salaries payable Decrease in prepaid insurance Increase in income tax payable (23.2) 4.2 4.0 10.8 Net cash flows from operating activities $ 13.2