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 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

Prepare a schedule to reconcile net income to net cash flows from operating activities

Sales                                                                                        $ 293.2

Cost of goods sold                                                                  ( 157.8)

Gross margin                                                                            135.4

Salaries expense                                             $44.0

Insurance expense                                             19.7

Depreciation expense                                        14.5

Depletion expense                                                6.2

Bond interest expense                                         13.3               (97.7)

Gains and losses:

            Gain on sale of equipment                                               22.5

            Loss on sale of land                                                           (7.8)

Income before tax                                                                        52.4

Income tax expense                                                                    (26.2)

Net Income                                                                                    26.2

Cash flow from operating activities:

Cash received from customers                                               $ 262.0

Cash paid to suppliers                                                            (144.0)

Cash paid to employees                                                         (38.0)

Cash paid for interest                                                             (10.9)

Cash paid for insurance                                                             (14.8)

Cash paid for income taxes                                                        (13.4)

Net cash flows from operating                                              $   40.9

Activities

Prepare a schedule to reconcile net income to net cash flows from operating activities.  

           

Answer 1

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