The accounting records of Hampton Company provided the data below ($ in thousands). Net income $ 32,300 Depreciation expense 9,300 Increase in accounts receivable 5,500 Decrease in inventory 7,000 Decrease in prepaid insurance 1,950 Decrease in salaries payable 4,200 Increase in interest payable 1,350 Required: Prepare a reconciliation of net income to net cash flows from operating activities. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.)

= Net Income + Depreciation Expense + Increase in accounts receivable + Decrease in inventory + Decrease in prepaid insurance - Decrease in salaries payable + Increase in interest payable

= $ 32,300 + $9,300 + $5,500 + $7,000 + $1,950 - $4,200 + $1,350

= $53,200

Therefore, the net cash flow from operating activities is $53,200.

Reconciliation of net income to net cash flows from operating activities is attached with the answer.