16

Adjustments to Net IncomeIndirect Method

Kingston Corporation's accumulated depreciationequipment account increased by $4,000, while $2,600 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 $3,100 from the sale of land.

Reconcile a net income of $45,800 to net cash flow from operating activities. $