Adjustments to Net IncomeIndirect Method

Congress Corporation's accumulated depreciationequipment account increased by $3,500, while $2,300 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 $2,700 from the sale of investments.

Reconcile a net income of $40,200 to net cash flows from operating activities. $____________