Question

RL Photography reported net income of $305,900 for 2014. Included in the income statement were depreciation expense of $19,272, patent amortization expense of $12,236, and a gain on disposal of plant assets of $11,012. RL's comparative balance sheets show the following balances. 12/31/14 12/31/13 Accounts receivable $64,239 $82,593 Accounts payable 28,143 18,354 Calculate net cash provided by operating activities for RL Photography.

Answer 1

Answer:

Net cash flow   $338019

Explanation:

Given:

Reported net income = $305,900

Depreciation expense = $19,272

Patent amortization expense = $12,236

Gain on disposal of plant assets = $11,012

Decrease in account receivables = $82,593 - $64,239 = $18,354

Increase in payable = $28,143 - $18,354 = $9789

Now,

The cash flow

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Net income                                       $305,900

Depreciation expense                       - $19,272

Patent amortization expense              $12,236

Gain on disposal of plant assets          $11,012

Decrease in account receivables       $18,354

Increase in payable                                $9789

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Net cash flow                                       $338019

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