Adjustments to Net Income-Indirect Method Congress Corporation's accumulated depreciation-equipment account increased by $10,100, while $6,600 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 $7,700 from the sale of investments. Reconcile a net income of $115,000 to net cash flow from operating activities. Feedback Check My Work Consider how each of the above mentioned items would have affected the income statement. What journal entry would have been made to record these transactions? Do these items have an affect on cash? Would any of these transactions appear in a different portion of the statement of cash flows? Learning Objective 2