The accounting records of Rockness Company provided the data…

The accounting records of Rockness Company provided the data below ($ in 000s). Net income $ 25,800 Depreciation expense 3,900 Decrease in accounts receivable 2,600 Increase in inventory 5,100 Increase in prepaid insurance 360 Increase in salaries payable 840 Decrease in interest payable 460 Required: Prepare a reconciliation of net income to net cash flows from operating activities.

Present and future values of $1 at 11% are presented below….

Present and future values of $1 at 11% are presented below. PV of $1 FV of $1 PVA of $1 FVA of $1 1 0.90090 1.11000 0.90090 1.0000 2 0.81162 1.23210 1.71252 2.1100 3 0.73119 1.36763 2.44371 3.3421 4 0.65873 1.51807 3.10245 4.7097 5 0.59345 1.68506 3.69590 6.2278 6 0.53464 1.87041 4.23054 7.9129 On October 1, 2027, Justine Company purchased equipment from Napa Incorporated in exchange for a noninterest-bearing note payable in five equal annual payments of $500,000, beginning October 1, 2028. Similar borrowings have carried an 11% interest rate. The equipment would be recorded at: