Question

Book Show Me How Calculator Adjustments to net income Indirect method Instructions Amount Descriptions Reconciliation of Net Income Instructions Ripley Corporations accumdated depreciation equipment account increased by 56,740, while $2,730 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 $5.040 from the sale of investments Reconcile a net income of $126, 100 tonelcach Row from operating acties Refer to the Amount Description is provided for the exact wording of the answer choice for fout entries. For those bones in which you must enter subtractive or negative numbers use a minus sign A IV BNMP

Answer 1

Statement of Cash Flows - Indirect Method
	Amount in $	Amount in $
Net income		$          1,26,100
Cash flows from operating activities
Adjustments for:
Depreciation Expenses	$                6,740
Gain on sale of investment	$              -5,040
Amortiation of patent	$                2,730
		$                4,430
Net cash from operating activities		$          1,30,530
Note:
1 - Depreciation and amortization of expenses are non cash expenses so they ar added back to net income
2 - Gain on sale of investment have no cash impact in operating activities but sale price of the investment
will ne shown in cash flow from investment activities