Adjustments to net income-indirect method

Chu Corporation’s accumulated depreciation-equipment increased by $5,600, while $2,080 of patents were amortized 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 gain of $12,000 from the sale of investments. Reconcile a net income of $112,000 to net cash flow from operating activities.

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