The Accounting Records of Unlucky Company Provided the Data Below

question 18

Essay

The accounting records of Unlucky Company provided the data below. $$\begin{array} { | l | l |} \hline \text { Net loss } & \$ 40,000 \\\hline \text { Depreciation expense } & 12,000 \\\hline \text { Increase in salaries payable } & 11,000 \\\hline \text { Increase in accounts receivable } & 4,000 \\\hline \text { Decrease in inventory } & 4,800 \\\hline \text { Amortization of patent } & 700 \\\hline \text { Decrease in premium on bonds } & 500 \\\hline\end{array}$$ Required:
Prepare a reconciliation of net income to net cash flows from operating activities.

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Definitions:

Pahoehoe Lava

A type of basaltic lava flow with a smooth, unbroken surface that resembles ropey or wrinkled skin, flowing more fluidly than other types.

Aa Lava

A type of lava flow characterized by a rough, jagged surface formed when more viscous lava cools and solidifies.

Vesicles

Small cavities in volcanic rocks that were formed by gas bubbles during the solidification of the rock.

Caldera Eruption

A volcanic eruption characterized by the collapse of land following a massive explosion, leaving a large, basin-shaped depression.