Question

The income statement and the cash flows from the operating activities section of the statement of cash flows are provided below for Syntric Company. The merchandise inventory account balance neither increased nor decreased during the reporting period. Syntric had no liability for insurance, deferred income taxes, or interest at any time during the period.

SYNTRIC COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands)
Sales				$	283.1
Cost of goods sold					(175.6	)
Gross margin					107.5
Salaries expense	$	39.8
Insurance expense		17.7
Depreciation expense		6.5
Depletion expense		4.4
Interest expense		11.3			(79.7	)
Gains and losses:
Gain on sale of equipment					23.0
Loss on sale of land					(6.8	)
Income before tax					44.0
Income tax expense					(22.0	)
Net income				$	22.0
Cash Flows from Operating Activities:
Cash received from customers				$	245.0
Cash paid to suppliers					(166.0	)
Cash paid to employees					(36.0	)
Cash paid for interest					(9.9	)
Cash paid for insurance					(13.8	)
Cash paid for income tax					(11.4	)
Net cash flows from operating activities				$	7.9

Required:
Prepare a schedule to reconcile net income to net cash flows from operating activities. (Enter your answers in thousands rounded to 1 decimal place (i.e., 5,500 should be entered as 5.5). Amounts to be deducted should be indicated with a minus sign.)

	RECONCILIATION OF NET INCOME TO NET CASH FLOWS FROM OPERATING ACTIVITIES Cash flows from operating activities: Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activities $0.0

Answer 1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.