Explore BrainMass

Explore BrainMass

    Gates Corporation's accumulated depreciation

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Gates Corporation's accumulated depreciation-equipment increased by $8,000, while patents decreased by $5,200 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 $6,000 from the sale of investments. Reconcile a net income of $90,000 to net cash flow from operating activities.

    What is the net cash flow from operating activities?

    © BrainMass Inc. brainmass.com March 4, 2021, 8:10 pm ad1c9bdddf

    Solution Preview

    Cash Flow from Operating Activities:

    Net Income $90,000
    Add: Depreciation $8,000
    Add: Loss on Sale of Equipment $6,000
    Add: Amortization of Intangible Assets $5,200

    Net cash ...

    Solution Summary

    Gates Corporation's accumulated depreciation are discussed.