Exercise 4-15 (Algo) Indirect method; reconciliation of net income to net cash flows from operating activities [LO4-8] The accounting records of Hampton Company provided the data below ($ in thousands). Net income Depreciation expense Increase in accounts $ 19,300 8,000 4,200 receivable Decrease in inventory 5,700 Decrease in prepaid 1,300 insurance Decrease in salaries 2,900 payable Increase in interest 700 payable Required: Prepare a reconciliation of net income to net cash flows from operating activities. Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands. Cash flows from operating activities: Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activities EA $ 0

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Exercise 4-15 (Algo) Indirect method; reconciliation of net income to net cash flows from operating
activities [LO4-8]
The accounting records of Hampton Company provided the data below ($ in thousands).
Net income
Depreciation expense
Increase in accounts
receivable
$ 19,300
8,000
4,200
Decrease in inventory
5,700
Decrease in prepaid
1,300
insurance
Decrease in salaries
2,900
payable
Increase in interest
700
payable
Required:
Prepare a reconciliation of net income to net cash flows from operating activities.
Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.
Cash flows from operating activities:
Adjustments for noncash effects:
Changes in operating assets and
liabilities:
Net cash flows from operating
activities
$
0
Transcribed Image Text:Exercise 4-15 (Algo) Indirect method; reconciliation of net income to net cash flows from operating activities [LO4-8] The accounting records of Hampton Company provided the data below ($ in thousands). Net income Depreciation expense Increase in accounts receivable $ 19,300 8,000 4,200 Decrease in inventory 5,700 Decrease in prepaid 1,300 insurance Decrease in salaries 2,900 payable Increase in interest 700 payable Required: Prepare a reconciliation of net income to net cash flows from operating activities. Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands. Cash flows from operating activities: Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activities $ 0
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