Question

Adjustments to net income—indirect method
Lighthouse Corporation's accumulated depreciation—equipment account increased by $17,240 while $3,900 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 $21,070 from the sale of investments. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below.

Reconcile a net income of $251,300 to net cash flow from operating activities. Round your answer to the nearest dollar.
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Answer 1

Answer Net cashflows from operating Activities Amoun H$) Particulars Net Income 251,300 Adel: Accumulated Depexp. 17,240 Add: Amortization of patents 3,900 Les mcome from rale of Mrestments (21,070) Net cach Howe from operating 257,370 $ - Activitier Note: a) Depreciation and Amortization are non-ceuth Expenser car so adoled back to profitar they were operating Actilier b) Sale Of Dovertments, not a Operating Activity so, deducted from profit to arrive at Net cash flowr from Muerting activities.