The statement of reconciliation between operating income per the income statement and cash flow from operations per the statement of cash flows for the year ended December 31, 2021, is presented below:
Operating income $200,000
Adjustments:
Depreciation expense 50,000
Amortization expense 10,000
Loss on sale of equipment (5,000)
Changes in current assets and liabilities:
Increase in accounts receivable (15,000)
Decrease in inventory 20,000
Increase in accounts payable 5,000
Increase in accrued liabilities 10,000
Cash flow from operations $285,000