RL Photography reported net income of $249,400 for 2014. Included in the income
ID: 2415877 • Letter: R
Question
RL Photography reported net income of $249,400 for 2014. Included in the income statement were depreciation expense of $15,712, patent amortization expense of $9,976, and a gain on disposal of plant assets of $8,978. RL's comparative balance sheets show the following balances.
12/31/14
12/31/13
$52,374
$67,338
22,945
14,964
Calculate net cash provided by operating activities for RL Photography. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
RL Photography
Statement of Cash Flows
For the Year 2014
Adjustments to reconcile net income to
$
12/31/14
12/31/13
Accounts receivable$52,374
$67,338
Accounts payable22,945
14,964
Explanation / Answer
Cash Flor from Operating Activities :
Net Income as per profit and Loss Account 249400
Add : Depreciation Expense 15712
Add: Patent Ammortization EXpense 7712
Less : Gain on Sale of Asset 8978
Less : Decrease in Accounts payable 7981
Less : Increase in ACcounts Recievable 14964
Net Cash Flow from Operating Activities 240701
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