Chu Corporations accumulated depreciation equipment increased by $5,600, while $2,080 of patents were amortized 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 $12,000 from the sale o...

Net income 112000 Adjustments to reconcile net ...

Chu Corporations accumulated depreciation-equipment increased by $5,600, while $2,080 of patents were amortized between balance sheet dates.

Question:

Chu Corporation’s accumulated depreciation-equipment increased by $5,600, while $2,080 of patents were amortized between dates. There were no purchases or sales of depreciable or during the year. In addition, the income statement showed a gain of $12,000 from the sale of investments. Reconcile a net income of $112,000 to net cash flow from operating activities.

Intangible Assets
An intangible asset is a resource controlled by an entity without physical substance. Unlike other assets, an intangible asset has no physical existence and you cannot touch it.Types of Intangible Assets and ExamplesSome examples are patented... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...