Chapter 21, Problem 21.22E

Indirect method; reconciliation of net income to net cash flows from operating activities

• LO21–4

The accounting records of Baddour Company provided the data below. Prepare a reconciliation of net income to net cash flows from operating activities.

Net loss	$5,000
Depreciation expense	6,000
Increase in salaries payable	500
Decrease in accounts receivable	2,000
Increase in inventory	2,300
Amortization of patent	300
Reduction in discount on bonds	200