Question

The accounting records of Hampton Company provided the data below ($ in thousands). Net income Depreciation expense Increase in accounts receivable Decrease in inventory Decrease in prepaid insurance Decrease in salaries payable Increase in interest payable $33,300 9,400 5,600 7,100 2,000 4,300 1,400 Required: Prepare a reconciliation of net income to net cash flows from operating activities. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.) Cash flows from operating activities: Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activities

Answer 1

Hampion Company Ruoniliation of net income do net Cash flows from Operating echvides (Cash flow statement) Particulars $ bash Slows from Operating Ach vites: Net Income 33,300 Adjustments for non cash effects: Deprecation expense . 9,400 Changes iss Opesating assets and liabilucher, Increase in allounds receivable .(5,600) 7,100 Decrease in Prepaid insusanle 2000 Dasease as Salories payable (4,300) linere are in Interest payable 1,400 Durease in lovendery Net-Cash flows from Operating Dedivines 43,300