Determine the total amount of adjustments to add to net income in order to compute cash...
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Determine the total amount of adjustments to add to net income in order to compute cash flow from operating activities if the indirect method is used. 1. Goodwill impairment $400,000. 2. Issued $900,000 note payable in exchange for land and building of the same value. 3. Depreciation and amortization expense $250,000. 4. Exchange $500,000 patent for $500,000 stock investment. 5. Stock-based compensation to employees $200,000. 6. Issued $700,000 par value common stock upon conversion of bonds having a face value of $700,000. 7. Loss on sale of equipment $50,000. 8. Unrealized gain on equity securities $150,000. Determine the total amount of adjustments to add to net income in order to compute cash flow from operating activities if the indirect method is used. 1. Goodwill impairment $400,000. 2. Issued $900,000 note payable in exchange for land and building of the same value. 3. Depreciation and amortization expense $250,000. 4. Exchange $500,000 patent for $500,000 stock investment. 5. Stock-based compensation to employees $200,000. 6. Issued $700,000 par value common stock upon conversion of bonds having a face value of $700,000. 7. Loss on sale of equipment $50,000. 8. Unrealized gain on equity securities $150,000.
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Related Book For
Financial Reporting Financial Statement Analysis and Valuation
ISBN: 978-0324302950
6th edition
Authors: Clyde P. Stickney
Posted Date:
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