The income statement for CBA reported a net loss of $14,000. Also, the statement reported depreciation expense of $12,000 and amortization of patents of $6,000. Assuming no additional "adjustments to reconcile net income to cash from operating activities," the cash flow from operations would be a:
A) $4,000 inflow.
B) $6,000 inflow.
C) $16,000 inflow.
D) $30,000 inflow.
E) ($4,000) outflow.

Question

Quizplus · Accepted Answer

The net loss of $14,000 is adjusted by adding back non-cash expenses: $12,000 depreciation and $6,000 amortization, resulting in a $4,000 inflow ($12,000 + $6,000 - $14,000 = $4,000).

The Income Statement for CBA Reported a Net Loss of $14,000