Reconciliation of net income to net cash provided by operating
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Altobelli Auto Parts had a cash balance on December 31, 20X0, of $50,000. Its net income for 20X1 was $364,000. Its 20X1 transactions affecting income or cash were (in thousands):
1. Sales of $1,600, all on credit. Cash collections from customers, $1,450.
2. The cost of items sold, $850. Purchases of inventory totaled $900; inventory and accounts payable were affected accordingly.
3. Cash payments on trade accounts payable, $775.
4. Salaries and wages: accrued, $190; paid in cash, $180.
5. Depreciation, $45.
6. Interest expense, all paid in cash, $11.
7. Other expenses, all paid in cash, $100.
8. Income taxes accrued, $40; income taxes paid in cash, $30.
9. Bought plant and facilities for $335 cash.
10. Issued dept for $110 cash.
11. Paid cash dividends of $39.
Prepare a supporting schedule that reconciles net income to net cash provided by operating activities.
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Solution Summary
The solution examines reconcillation of net income to net cash provided by operating activities.
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Net Income 364,000
Depreciation 45,000
Change in Acct ...
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