Question
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
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, 2021 ($ in thousands) | ||||||
Sales | $ | 285.1 | ||||
Cost of goods sold | (167.8 | ) | ||||
Gross margin | 117.3 | |||||
Salaries expense | $ | 30.2 | ||||
Insurance expense | 18.9 | |||||
Depreciation expense | 12.5 | |||||
Depletion expense | 5.5 | |||||
Interest expense | 12.5 | (79.6 | ) | |||
Gains and losses: | ||||||
Gain on sale of equipment | 18.5 | |||||
Loss on sale of land | (7.4 | ) | ||||
Income before tax | 48.8 | |||||
Income tax expense | (24.4 | ) | ||||
Net income | $ | 24.4 | ||||
Cash Flows from Operating Activities: | ||||||
Cash received from customers | $ | 238.0 | ||||
Cash paid to suppliers | (155.0 | ) | ||||
Cash paid to employees | (25.0 | ) | ||||
Cash paid for interest | (10.5 | ) | ||||
Cash paid for insurance | (14.4 | ) | ||||
Cash paid for income tax | (12.6 | ) | ||||
Net cash flows from operating activities | $ | 20.5 | ||||
Required: Prepare a schedule to reconcile net income to net cash flows from operating activities. (Enter your answers in thousands rounded to 1 decimal place (i.e., 5,500 should be entered as 5.5). Amounts to be deducted should be indicated with a minus sign.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started