Durrand Corporation's accumulated depreciation increased by $12,267, while patents decreased by $3,944 between consecutive 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 $3,891 from sale of land. The company earned a net income of $51,987. Determine net cash flow from operating activities under the indirect method. $fill in the blank 1

2. Determining Cash Payments to Stockholders

The board of directors declared cash dividends totaling $109,600 during the current year. The comparative balance sheet indicates dividends payable of $26,300 at the beginning of the year and $23,700 at the end of the year.

What was the amount of cash payments to stockholders during the year? $fill in the blank 1

3.Appendix: Unusual Items

Explain whether Colston Company correctly reported the following items in the financial statements:

a. In a recent year, the company discovered a clerical error in the prior year's accounting records. As a result, the reported net income for the previous year was overstated by $45,000. The company corrected this error by restating the prior-year financial statements.

Colston Company reported this item

correctlyincorrectly

in the financial statements. This item is

an error in applying generally accepted accounting principlesa change from one generally accepted accounting principle to another

, which is correctly handled by

retroactively restating prior-period earningsreporting the change cumulatively in the current period

.

b. In a recent year, the company voluntarily changed its method of accounting for long-term construction contracts from the percentage of completion method to the completed contract method. Both methods are acceptable under generally acceptable accounting principles. The cumulative effect of this change was reported as a separate component of income in the current period income statement.

Colston Company reported this item

correctlyincorrectly

in the financial statements. This item is

an error in applying generally accepted accounting principlesa change from one generally accepted accounting principle to another

, which is correctly handled by

retroactively restating prior-period earningsreporting the change cumulatively in the current period

4. A company reports the following:

Income before income tax	$3,916,800
Interest expense	153,000

Determine the times interest earned ratio. If required, round the answer to one decimal place. fill in the blank 1