Question
Adjustments to Net IncomeIndirect Method Lighthouse Corporation's accumulated depreciationequipment account increased by $9,700, while $6,300 of patent amortization was recognized between balance sheet dates. There
Adjustments to Net IncomeIndirect Method
Lighthouse Corporation's accumulated depreciationequipment account increased by $9,700, while $6,300 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 $7,400 from the sale of land.
Reconcile a net income of $109,800 to netcash flow from operating activities.
$
Changes in Current Operating Assets and LiabilitiesIndirect Method
Covington Corporation's comparative balance sheet for current assets and liabilities was as follows:
Dec. 31, Year 2Dec. 31, Year 1Accounts receivable$15,800$13,900Inventory67,80077,900Accounts payable21,80018,500Dividends payable25,00027,000
Adjust net income of $121,800 for changes in operating assets and liabilities to arrive at netcash flow from operating activities.
$
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