Question

Adjustments to Net Income—Indirect Method Congress Corporation's accumulated depreciation—equipment account increased by $7,400, while $4,800 of patent amortization was recognized between balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement showed a loss of $5,600 from the sale of land. Reconcile a net income of $84,000 to net cash flow from operating activities.

Answer 1

Net income	$             84,000
Add:
Depreciation (non cash expense)	$               7,400
Patent Amortization( non cash expenses)	$               4,800
Loss on sale of land (non cash expenses)	$               5,600
Net cash flow from operating income	$         1,01,800
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