Question

he accounting records of Baddour Company provided the data below. Net loss $ 4,350 Depreciation expense 6,320 Increase in salaries payable 515 Decrease in accounts receivable 2,050 Increase in inventory 2,250 Amortization of patent 470 Reduction in discount on bonds 370 Prepare a reconciliation of net income to net cash flows from operating activities. (Amounts to be deducted should be indicated with a minus sign.)

Answer 1

Answer:

Net cash flows from operating activities $3,125

Explanation:

Cash flows from operating activities:

Net loss($4,350)

Adjustments for non cash effects:

Depreciation expense $6,320

Amortization of patent $470

Changes in operating assets and liabilities:

Increase in salaries payable $515

Decrease in accounts receivable $2,050

Increase in inventory($2,250)

Decrease in discount on bonds $370

Net cash flows from operating activities $3,125