Billings Company has a patent on its books with a balance at the beginning of the year

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Billings Company has a patent on its books with a balance at the beginning of the year of $24,000. The ending balance for the asset was $20,000. The company did not buy or sell any patents during the year, nor does it use an Accumulated Amortization account. Assuming that the company uses the indirect method in preparing a statement of cash flows, how is the decrease in the Patents account reported on the statement?

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