Question

The accounting records of Hampton Company provided the data below ($ In 000s). Net income Depreciation expense Increase in accounts receivable Decrease in inventory Decrease in prepaid insurance Decrease in salaries payable Increase in interest payable $21,300 8,200 4,400 5,900 1,400 3,100 800 Required: Prepare a reconciliation of net Income to net cash flows from operating activities. (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 S

Answer 1

Cash flow from operating activities:
Net income	$21,300
Adjustment for non cash effects:
Depreciation expense	8,200
Changes in operating assets and liabilities:
Increase in accounts receivable	(4,400)
Decrease in inventory	5,900
Decrease in prepaid insurance	1400
Decrease in salaries payable	(3,100)
Increase in interest payable	800
Net cash provided by operating activities		$30,100