Samuel Company's accumulated depreciation-equipment increased by $6,000, while patents decreased by $2,200 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 loss of $3,200 from the sale of investments. Assume no changes in noncash current assets and liabilities.
Reconcile a net income of $92,000 to net cash flow from operating activities.
Net income
$ 92,000
Adjustments to reconcile net income to net cash flow
from operating activities:
Depreciation
6,000
Amortization
2,200
Loss from sale of investments
3,200

Question

Samuel Company's accumulated depreciation-equipment increased by $6,000, while patents decreased by $2,200 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 loss of $3,200 from the sale of investments. Assume no changes in noncash current assets and liabilities.
Reconcile a net income of $92,000 to net cash flow from operating activities.
  Net income
$ 92,000
Adjustments to reconcile net income to net cash flow
from operating activities:
Depreciation
6,000
Amortization
2,200
Loss from sale of investments
3,200

Quizplus · Accepted Answer

The Answer of Samuel Company's accumulated depreciation-equipment increased by $6,000, while patents decreased by $2,200 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 loss of $3,200 from the sale of investments. Assume no changes in noncash current assets and liabilities.
Reconcile a net income of $92,000 to net cash flow from operating activities.
  Net income
$ 92,000
Adjustments to reconcile net income to net cash flow
from operating activities:
Depreciation
6,000
Amortization
2,200
Loss from sale of investments
3,200

Samuel Company's Accumulated Depreciation-Equipment Increased by $6,000, While Patents Decreased