BlueInk Corporation's accumulated depreciation increased by $14,000, while patents decreased by $3,875 between consecutive 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 on sale of land of $1,950. Accounts receivable increased $6,320, inventory decreased $3,125, prepaid expenses decreased $720, and account payable increased $2,760.Required:Reconcile a net income of $55,000 to net cash flow from operating activities.

Respuesta :

Answer:

Net cash flow from operating activities $69,285

Explanation:

The computation of the net cash flow from operating activities is shown below:

Cash flow from operating activities

Net income $55,000

Adjustments made to reconcile

Add: Depreciation expense $14,000

Less: Increase in account receivable -$6,320

Add: Decrease in inventory $3,125

Add: Decrease in prepaid expense $720

Add: Increase in account payable $2,760

Net cash flow from operating activities $69,285