Question

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.

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

Step-by-step 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