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 For the Year Ended December 31, 2021 ($ in thousands) Sales $ 312 Cost of goods sold (188) Gross margin 124 Salaries expense $41 Insurance expense 22 Depreciation expense 11 Depletion expense 5 Interest expense 10 (89) Gains and losses: Gain on sale of equipment 25 Loss on sale of land (8) Income before tax 52 Income tax expense (26) Net income 26 Cash Flows from Operating Activities: Cash received from customers $ 258 Cash paid to suppliers (175) Cash paid to employees (37) Cash paid for interest (9) Cash paid for insurance (16) Cash paid for income tax (14) Net cash flows from operating activities $ 7 $ Required: Prepare a schedule to reconcile net income to net cash flows from operating activities. (Enter your answers in thousands (i.e., 5,000 should be entered as 5). Amounts to be deducted should be indicated with a minus sign.) 26 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 Gain on sale of equipment Loss on sale of land 11 5 (25) 8 (54) 13 Changes in operating assets and liabilities: Increase in accounts receivable Increase in accounts payable Increase in salaries payable Decrease in prepaid insurance Increase in income tax payable 4 6 12 Net cash flows from operating activities $ 6 09