Omni Corporation's accumulated depreciation-equipment account increased by $5,300, while $3,400 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 $4,000 from the sale of land.

Reconcile a net income of $120,400 to net cash flow from operating activities. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

Question

Business

Justice Schmidt

11 March, 15:58

Omni Corporation's accumulated depreciation-equipment account increased by $5,300, while $3,400 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 $4,000 from the sale of land.

Reconcile a net income of $120,400 to net cash flow from operating activities. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

+5

Answers (1)

Know the Answer?

Rhett Maynard · Answer 1

Cashflow from Operating Activities

Net Income $120,400

Adjastment for Non-Cash Items

Depreciation $5,300

Amortization $3,400

Adjastments of Items appearing elsewhere

Loss from the sale of land $4,000

Net Cash flow from operating activities $133,100

Explanation:

Net Income is reconciled in the cashflow statement via the indirect method. Its is adjasted for Non-Cash Items, Items appearing elsewhere in the cashflow statement and Working Capital Movements