Question

Kingston Corporation's accumulated depreciation—equipment account increased by $9,600, while $6,200 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 gain of $7,300 from the sale of land.

Reconcile a net income of $109,500 to net cash flow from operating activities.

$_________

Answer 1

Answer

--Correct Answer = $ 118,000

Net Income		$109,500
Adjustments to reconcile net income
Depreciation expense	$9,600
Amortisation expense	$6,200
Gain from sale of land	($7,300)
		$8,500
Net Cash flows from Operating activities		$118,000 Answer