Business, 26.12.2019 18:31 natbod133

He accounting records of ez company provided the data below. net income $ 50,000 depreciation expense 7,000 increase in inventory 1,500 decrease in salaries payable 800 decrease in accounts receivable 2,000 amortization of patent 500 amortization of premium on bonds 1,000 increase in accounts payable 4,000 cash dividends 12,000 prepare a reconciliation of net income to net cash flows from operating activities.

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Answer from: darlinsanchez08com

Amount in $

Net income 50,000

Depreciation expense 7,000

Increase in inventory (1,500)

Decrease in salaries payable (800)

Decrease in accounts receivable 2,000

Amortization of patent 500

Amortization of premium on bonds 1,000

Increase in accounts payable 4,000

Net cash flow from operating activities 62,200

Explanation:

Net income = $ 50,000 (operating activity)

Depreciation expense = $7,000 (operating activity)

Increase in inventory = $1,500 (operating activity)

Decrease in salaries payable = $800 (operating activity)

Decrease in accounts receivable = $2,000 (operating activity)

Amortization of patent = $500 (operating activity)

Amortization of premium on bonds = $1,000 (operating activity)

Increase in accounts payable = $4,000 (operating activity)

Cash dividends = $12,000 (financing activity)

Reconciliation of net income to net cash flows from operating activities

Amount in $

Net income 50,000

Depreciation expense 7,000

Increase in inventory (1,500)

Decrease in salaries payable (800)

Decrease in accounts receivable 2,000

Amortization of patent 500

Amortization of premium on bonds 1,000

Increase in accounts payable 4,000

Net cash flow from operating activities 62,200

Answer from: Quest

the answer is d

explanation:

Answer from: Quest

The answer should be a.

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