Question

Cengagerom. O d * + AM-0020 US HISTORX Cergage gment/ sigmentMandolinerasi e session comment takenprogress ATEMENT OF CASH FLOWS, USING THE INDIRECT METHOD. actice! Adjustments to Net Income--Indirect Method Austments to income-Intethed twee balance sheet dates. There were no purchases Kingston Corporation's accurated deprecatione m a ut increased by $5,800, while $4,400 of patutan www during the year. In dion, the income statement showed again of $5,200 from these of land Deconcile a net income of 77.400 to net cash flow from operating activities

Answer 1

Cash flow from Operating Activities of Kingston Corporation:
Net Income		77,400
Adjustments for:
Depreciation on Equipment	6,800
Amortization on Intangible Assets	4,400
Gain on Sale of Land	(5,200)
		6,000
Cash Generated from Operations		83,400

Note:

Depreciation & Amortization being non cash expenses are added back to Net Income.

Gain on Sale of Land is not part of operating activities thus excluded from Operating Income