Question
)STU Corp. has the following amounts for 2016: Net income of $2,500,000 Depreciation expense of $175,000 Amortization of intangibles of $240,000 Amortization of a bond
)STU Corp. has the following amounts for 2016:
Net income of $2,500,000
Depreciation expense of $175,000
Amortization of intangibles of $240,000
Amortization of a bond discount, $120,000
Amortization of a bond premium, $50,000
Pension expense in excess of contributions, $25,000
Increase in deferred tax assets, $160,000
Decrease in deferred tax liabilities, $80,000
Proportionate share of net income from equity investment, $75,000
Proportionate share of dividends from an equity investment, $5,000
Prepare the cash flows from operations for STU Corp. for the year ended December 31, 2016
using the indirect method:
Cash from Operating activities:
Net income2,500,000
Depreciation expense175,000
Amortization of intangibles240,000
Amortization of bond discount120,000
Amortization of bond premium(50,000)
Pension excess in excess of contributions25,000
Increase in deferred tax assets (160,000)
Decrease in deferred tax liabilities(80,000)
Net increase in equity investment (got stuck here) please help
Cash provided by operations
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