Adjustments to Net IncomeIndirect Method

Lighthouse Corporation's accumulated depreciationfurniture account increased by $3,700, while $2,400 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 gain of $2,800 from the sale of land.

Reconcile a net income of $42,300 to net cash flow from operating activities. $

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Changes in Current Operating Assets and LiabilitiesIndirect Method

Blue Circle Corporation's comparative balance sheet for current assets and liabilities was as follows:

	Dec. 31, 2014		Dec. 31, 2013
Accounts receivable	$30,300		$25,900
Inventory	51,400		58,400
Accounts payable	26,000		22,400
Dividends payable	18,000		20,000

Adjust net income of $89,500 for changes in operating assets and liabilities to arrive at net cash flow from operating activities. $