16-2 16-02 Adjustments to Net IncomeIndirect Method

Lighthouse Corporation's accumulated depreciationequipment account increased by $5,300, while $3,400 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 loss of $4,000 from the sale of land.

Reconcile a net income of $60,200 to net cash flow from operating activities.

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