The accounting department for Aramai Inc.

The accounting department for Aramai Inc. is preparing the cash flow statement for the current year. Using the select financial statement data below, what is Aramai’s net income when converted to cash provided by operating activities, using the indirect method?

Given:

Net Income = $463,000

Equipment Depreciation = +$38,500

Patent Amortization = +$17,950

Loss on Sale of Equipment = +$4,000

Increase in Accounts Receivable = −$29,900

Apply adjustments to net income:

Cash from Operating Activities =

= $463,000