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.

SYNTRIC COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands)
Sales				$	271.7
Cost of goods sold					(168.8	)
Gross margin					102.9
Salaries expense	$	35.0
Insurance expense		16.9
Depreciation expense		9.0
Depletion expense		3.4
Interest expense		10.4			(74.7	)
Gains and losses:
Gain on sale of equipment					19.0
Loss on sale of land					(6.4	)
Income before tax					40.8
Income tax expense					(20.4	)
Net income				$	20.4
Cash Flows from Operating Activities:
Cash received from customers				$	225.0
Cash paid to suppliers					(158.0	)
Cash paid to employees					(32.0	)
Cash paid for interest					(9.5	)
Cash paid for insurance					(13.4	)
Cash paid for income tax					(10.6	)
Net cash flows from operating activities				$	1.5

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.)

RECONCILIATION OF NET INCOME TO

NET CASH FLOWS FROM OPERATING ACTIVITIES

Cash flows from operating activities:

Net income

Adjustments for noncash effects:

Changes in operating assets and liabilities:

Net cash flows from operating activities$0.0

Answer 1

Cash flows from Operating activities:
Net Income for the yar		20.4
Adjustment for non cash effects
Depreciation expenses		9
Depletion expense			3.4
Loss on sale of land			6.4
Gain on sale of equipment		-19
Increase in Accounts receivable (271.7-225)	-46.7
Increase in Accounts payable (168.8-158)	10.8
Increase in Salaries payable (35-32)	3
Increase in Interest payable (10.4-9.50)	0.9
Decrease in Prepaid insurance (16.9-13.4)	3.5
Increase in Income tax payable (20.4-10.60)	9.8
Net cash from Operating activities	1.5