Hampton Company

The accounting records of Hampton Company provided the data below ($ in 000s).

Required:
Prepare a reconciliation of net income to net cash flows from operatingactivities.

Expert Solution

Cash flows from operating activities:

Net income $17,300

Adjustments for noncash effects:

Depreciation expense 7,800

Changes in operating assets and liabilities:

Increase in accounts receivable (4,000)

Decrease in inventory 5,500

Decrease in prepaid insurance 1,200

Decrease in salaries payable (2,700)

Increase in interest payable 800

Net cash flows from operating activities $25,900

Raffay answered 2 years ago

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