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3. Congress Corporation's accumulated depreciation—equipment account increased by $5,900, while $3,800 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 loss of $4,500 from the sale of land. Reconcile a net income of $66,900 to net cash flow from operating activities.  $_______

3. Congress Corporation's accumulated depreciation—equipment account increased by $5,900, while $3,800 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 loss of $4,500 from the sale of land. Reconcile a net income of $66,900 to net cash flow from operating activities.  $_______

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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3. Congress Corporation's accumulated depreciation—equipment account increased by $5,900, while $3,800 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 loss of $4,500 from the sale of land.

Reconcile a net income of $66,900 to net cash flow from operating activities. 
$_______

4. Adjust net income of $83,000 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.
$________

Changes in Current Operating Assets and Liabilities-Indirect Method Mohammed Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $19,400 $16,000 Inventory 55,900 65,800 Accounts payable 18,500 23,400 Dividends payable 17,000 18,000 Adjust net income of $83,000 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.
Transcribed Image Text:Changes in Current Operating Assets and Liabilities-Indirect Method Mohammed Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, Year 2 Dec. 31, Year 1 Accounts receivable $19,400 $16,000 Inventory 55,900 65,800 Accounts payable 18,500 23,400 Dividends payable 17,000 18,000 Adjust net income of $83,000 for changes in operating assets and liabilities to arrive at net cash flow from operating activities.
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