The accounting records of Eastlake Industries provided the data below. Net income $ 300,000 Depreciation expense 15,000 Increase in inventory 2,000 Increase in accounts receivable 1,400 Decrease in interest payable 1,600 Amortization of bond premium 3,000 Increase in accounts payable 7,000 Cash dividends paid 20,000 Required: Prepare a reconciliation of net income to net cash flows from operating activities.