View Policies Current Attempt in Progress Marin Co. reported $151.800 of net income for 2020. The accountant, in preparing the statement of cash flows, noted the following items occurring during 2020 that might affect cash flows from operating activities. 1 2 3 Marin purchased 100 shares of treasury stock at a cost of $20 per share. These shares were then resold at $25 per share, Marin sold 100 shares of IBM common at $220 por share. The acquisition cost of these shares was $140 per share. There were no unrealized gains or losses recorded on this investment in 2020. Marin revised its estimate for bad debts. Before 2020, Marin's bad debt expense was 1% of its receivables. In 2020, this percentage was increased to 2%. Net account for 2020 were $537,800, and net accounts receivable decreased by $11,600 during 2020 Marin Issued 500 shares of its $10 par common stock for a patent. The market price of the shares on the date of the transaction was $23 per share. Depreciation expense is $38,800. 4 5. 6 Marin Co. holds 40% of the Nirvana Company's common stock as a long-term investment. Nirvana Company reported $25,400 of net income for 2020 Marin Co. Statement of Cash Flows (Partial) For the Year Ended December 31, 2020 Cash Flows from Operating Activities Net Income $ 151800 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense 38800 Gain on Sale of Investment Decrease in Accounts Receivable 11600 Adjustments to reconcile net income to Net Cash Provided by Operating Activities $ 38800 Depreciation Expense Gain on sale of investment 11600 Decrease in Accounts Receivable Income from Equity Method Investment Dividends from Equity Method Investment Net Cash Provided by Operating Activities View Policies Current Attempt in Progress Marin Co. reported $151.800 of net income for 2020. The accountant, in preparing the statement of cash flows, noted the following items occurring during 2020 that might affect cash flows from operating activities. 1 2 3 Marin purchased 100 shares of treasury stock at a cost of $20 per share. These shares were then resold at $25 per share, Marin sold 100 shares of IBM common at $220 por share. The acquisition cost of these shares was $140 per share. There were no unrealized gains or losses recorded on this investment in 2020. Marin revised its estimate for bad debts. Before 2020, Marin's bad debt expense was 1% of its receivables. In 2020, this percentage was increased to 2%. Net account for 2020 were $537,800, and net accounts receivable decreased by $11,600 during 2020 Marin Issued 500 shares of its $10 par common stock for a patent. The market price of the shares on the date of the transaction was $23 per share. Depreciation expense is $38,800. 4 5. 6 Marin Co. holds 40% of the Nirvana Company's common stock as a long-term investment. Nirvana Company reported $25,400 of net income for 2020 Marin Co. Statement of Cash Flows (Partial) For the Year Ended December 31, 2020 Cash Flows from Operating Activities Net Income $ 151800 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense 38800 Gain on Sale of Investment Decrease in Accounts Receivable 11600 Adjustments to reconcile net income to Net Cash Provided by Operating Activities $ 38800 Depreciation Expense Gain on sale of investment 11600 Decrease in Accounts Receivable Income from Equity Method Investment Dividends from Equity Method Investment Net Cash Provided by Operating Activities