Question

Adjustments to Net Income—Indirect Method

Congress Corporation's accumulated depreciation—equipment account increased by $4,500, while $2,900 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 $3,400 from the sale of land.

Reconcile a net income of $51,200 to net cash flow from operating activities.
$

Answer 1

Partculars			Amount
Net income			51200
adjustment to reconcile net income
Depreciation			4500
amortization of patent			2900
gain on sale of land			-3400
net cash flow from operating activities			55200

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