Cashman Company reported net income of $255,000 for the year ended 12\31\11.Included in the computation of net income were: depreciation expense, $45,000; amortization of a patent, $24,000; income from an investment in ordinary shares of Linda Inc., accounted for under the equity method, $36,000; and amortization of a bond premium, $9,000.Cashman also paid a $60,000 dividend during the year.The net cash provided by operating activities would be reported at:

Question

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To calculate net cash provided by operating activities, start with net income and adjust for non-cash expenses and changes in working capital. Add back non-cash expenses like depreciation ($45,000) and amortization ($24,000). Subtract non-cash income like income from equity investment ($36,000) and amortization of bond premium ($9,000). The calculation is: $255,000 + $45,000 + $24,000 - $36,000 - $9,000 = $279,000. Dividends paid are not included in operating activities.

Cashman Company Reported Net Income of $255,000 for the Year