The accounting records of EZ Company provided the data below. Net income $ 52,850 Depreciation expense 8,350 Increase in inventory 2,175 Decrease in salaries payable 1,355 Decrease in accounts receivable 2,900 Amortization of patent 605 Amortization of premium on bonds 2,185 Increase in accounts payable 5,350 Cash dividends paid 13,500 Prepare a reconciliation of net income to net cash flows from operating activities

$64,340

Explanation:

Cash flows from operating activities

Net income                                                     $52,850  

Adjustments for non cash effects

Depreciation expense                                    $8,350  

Amortization of patent                                    $605

Changes in operating assets and liabilities

Increase in inventory                                      -$2,175

Decrease in bonds premium                         -$2,185

Decrease in salaries payable                        -$1,355  

Decrease in accounts receivable                   $2,900

Increase in accounts payable                         $5,350

Net Cash flow from operating activities      $64,340