Question

Vaughn Manufacturing reported net income of $471000 for the year ended 12/31/21. Included in the computation of net income were: depreciation expense, $59600; amortization of a patent, $32200; income from an investment in common stock of Ivanhoe Company, accounted for under the equity method, $48500; and amortization of a bond discount, $12700. Vaughn also paid an $79000 dividend during the year. The net cash provided by operating activities would be reported at _________.

Answer 1

$483,800

Step-by-step explanation:

Prepare the Cash flow from Operating Activity Section as follows :

Net Income for the year $471,000

Adjustments for Non-cash items :

Depreciation expense $59,600

Amortization of a patent $32,200

Cash Generated from Operations $562,800

Dividend Paid ($79,000)

Net Cash from Operating Activities $483,800