Ya Wen Corporation’s accumulated depreciation—equipment account increased by $8,
ID: 2476607 • Letter: Y
Question
Ya Wen Corporation’s accumulated depreciation—equipment account increased by $8,750, while $3,250 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 $18,750 from the sale of investments. Reconcile a net income of $175,000 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.
Explanation / Answer
Statement of Cash Flow Particulars Amount Total Amount Income 175,000.00 Adjustments to Net Income: Gain on sale of invt (18,750.00) Depreciation on Equipment 8,750.00 Amortisation of intangible Patents 3,250.00 Cash flow from operating activities 168,250.00
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