W BE 13-2 Adjustments to net income-indirect method Obj. 2 Ripley Corporation's accumulated depreciation-equipment account increased by $11,575 while $2,500 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 $33,190 from the sale of investments. Reconcile a net income of $224,500 to net cash flow from operating activities. HOW BE 13-3 Changes in current operating assets and liabilities-indirect method Obj. 2 Huluduey Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $17.500 $12,500 Inventory 51,650 44,200 Accounts payable 8,480 5,100 Dividends payable 9,480 6,100 Adjust net income of $75,800 for changes in operating assets and liabilities to arrive at net cash flow from operating activities, BE 13-4 Cash flows from operating activities-indirect method Obj. 2 Staley Inc. reported the following data: Net income $396,200 Depreciation expense 61,250 Loss on disposal of equipment 27,600 Increase in accounts receivable 9,000 Increase in accounts payable Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. 3,350