The accounting records of Rockness Company provided the data below ($ in 000s).
Required: Prepare a reconciliation of net income to net cash flows from operating activities.
$$\begin{array} { l r }
\text { Net income } & \$ 25,200 \
\text { Depreciation and amortization expense } & 3,300 \
\text { Decrease in accounts receivable } & 2,000 \
\text { Increase in inventory } & 4,500 \
\text { Increase in prepaid insurance } & 300 \
\text { Increase in salaries payable } & 900 \
\text { Decrease in interest payable } & 400
\end{array}$$

Question

The accounting records of Rockness Company provided the data below ($ in 000s).
Required: Prepare a reconciliation of net income to net cash flows from operating activities.
 $$\begin{array} { l r } 
\text { Net income } & \$ 25,200 \
\text { Depreciation and amortization expense } & 3,300 \
\text { Decrease in accounts receivable } & 2,000 \
\text { Increase in inventory } & 4,500 \
\text { Increase in prepaid insurance } & 300 \
\text { Increase in salaries payable } & 900 \
\text { Decrease in interest payable } & 400
\end{array}$$

Quizplus · Accepted Answer

The Answer of The accounting records of Rockness Company provided the data below ($ in 000s).
Required: Prepare a reconciliation of net income to net cash flows from operating activities.
 $$\begin{array} { l r } 
\text { Net income } & \$ 25,200 \
\text { Depreciation and amortization expense } & 3,300 \
\text { Decrease in accounts receivable } & 2,000 \
\text { Increase in inventory } & 4,500 \
\text { Increase in prepaid insurance } & 300 \
\text { Increase in salaries payable } & 900 \
\text { Decrease in interest payable } & 400
\end{array}$$

The Accounting Records of Rockness Company Provided the Data Below