Ripley Corporation's accumulated depreciation-equipment account increased by $15,325 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 gain of $22,420 from the sale of investments. Reconcile a net income of $286,900 to net cash flow from operating activities.
Ripley Corporation's accumulated depreciation-equipment account increased by $15,325 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 gain of $22,420 from the sale of investments. Reconcile a net income of $286,900 to net cash flow from operating activities.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I know in order to find adjustments to net income using the indirect method you begin with the net income and add your
Transcribed Image Text:Ripley Corporation's accumulated depreciation-equipment account increased by $15,325 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
gain of $22,420 from the sale of investments.
Reconcile a net income of $286,900 to net cash flow from operating activities.
Expert Solution
Step 1
Cash flow from the operating activity is part of the cash flow statement. It indicates the cash inflow and outflow from the operation. It can be prepared using the direct and indirect methods.
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