Question

Pearl Corporation’s accumulated depreciation—furniture account increased by $8,400, while $3,080 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 $4,480 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.Reconciliation of Net Income Shaded cells have feedback Reconcile a net income of S120,400 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 120,400.00 Net income 2 Adjustments to reconcile net income to net cash flow from operating activities: 3 Amortization of patents 4 Depreciation 5 Loss from sale of land 6 Net cash flow from operating activities 8,400.00 3,080.00 4,480.00 $136,360.00

Answer 1

Answer: $136,360

Step-by-step explanation:

Based on the information given, the cash flow from operating activities will be calculated as:

Net income = $120400.

Add: Depreciation expense = $8400

Add: Patent ammortization = $3080

Add: Loss on fixed assets sale = $4480

Cash flow from operating activities:

= $120400 + $8400 + $3080 + $4480

= $136,360