Adjustments to Net Income—Indirect Method Congress Corporation's accumulated depreciation—equipment account increased by $7,300, while $4,800 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 $5,600 from the sale of land. Reconcile a net income of $83,500 to net cash flow from operating activities.
Both depreciation and amortzation are non-cash expense and is added back with net income. gain on sale of land is Non-Operating activity (Investing activity). so the same income is eliminated from net Income to find out the cash flow from operating activities.
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