PE 16-2B. Adjustments to net income -indirect method Obj. 2 Example Exercise 16-2 Show Me How Ya Wen Corporation's accumulated depreciation -equipment account in- creased by $8,750, while $3,250 of patent amortiza- tion was recognized be- tween balance sheet dates. There were no pur- chases or sales of depre- ciable or intangible assets during the year. In addi- tion, the income state- ment showed a gain of $18,750 from the sale of investments. Reconcile a net income of $175,000 to net cash flow from oper- ating activities