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 or deferred income taxes at any time during the period. SYNTRIC COMPANY Income Statement Sales For the Year Ended December 31, 2021 Cost of goods sold Gross margin ($ in thousands) $ 266.8 (166.6) 100.2 Salaries expense $33.8 Insurance expense 16.7 Depreciation expense 8.0 Depletion expense 3.2 Interest expense 10.2 (71.9) Gains and losses: Gain on sale of equipment 18.0 Loss on sale of land (6.3) Income before tax Income tax expense Net income Cash Flows from Operating Activities: Cash received from customers Cash paid to suppliers 40.0 (20.0) $ 20.0 $ 232.0 (156.0) Cash paid to employees Cash paid for interest Cash paid for insurance Cash paid for income tax Net cash flows from operating activities (31.0) (9.4) (13.3) (10.4) $ 11.9