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.
Net Income 364,000
Change in Acct ...
The solution examines reconcillation of net income to net cash provided by operating activities.