Question

Tasbet Company reported net income of $ 360 comma 000 for the current year. Included in the computation of net income​ was: Depreciation expense $ 70 comma 000 Amortization of a patent ​32,000 Income from an equityminusmethod investment 31 comma 000 Dividends received on equityminusmethod investment 0 Amortization of a bond discount 17 comma 000 Paid a dividend on preferred stock ​80,000 What is the amount of net cash provided by operating activities that would be reported as a result of these​ transactions?

Answer 1

$448,000.00

Step-by-step explanation:

net cash flow provided by operating activities=net income+depreciation expense+amortization of patent+amortization of bond discount-income from equity investment

net income is $360,000

depreciation expense is $70,000

amortization of patent is $32,000

amortization of bond discount is $17,000

income from equity investment is $31,000

dividend paid to preferred stock is excluded since it relates to financing activities of Tasbet Company

net cash flow provided by operating activities=$360,000+$70,000+$32,000+$17,000-$31,000=$448,000.00