The accounting records of EZ Company provided the data below. Prepare a reconciliation of net income to netcash flows from operating activities. Net income.................... $50,000Depreciation expense ............7,000Increase in inventory ...........1,500Decrease in salaries payable............ 800Decrease in accounts receivable............ 2,000Amortization of patent .............500Amortization of premium on bonds............ 1,000Increase in accounts payable ..........4,000Cash dividends............ 12,000

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Asked Mar 3, 2020
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The accounting records of EZ Company provided the data below. Prepare a reconciliation of net income to net
cash flows from operating activities. Net income.................... $50,000
Depreciation expense ............7,000
Increase in inventory ...........1,500
Decrease in salaries payable............ 800
Decrease in accounts receivable............ 2,000
Amortization of patent .............500
Amortization of premium on bonds............ 1,000
Increase in accounts payable ..........4,000
Cash dividends............ 12,000

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