I have an accounting question concerning cash flow from operating activities?

[werner72]

sinclair company's accumulated depreciation-equipment increased by $6,000, while patents decreased by $2,200 between balance sheet dates. there were no purchased or sales of depreciable or intangible assets during the year. in addition, the income statement showed a loss of $3,200 from the sale of investments.

Required: reconcile a net income of $92,000 to net cash flow from operating activities

the class kind of rushed through this final chapter and i'm not really sure what's going on

[werner72]

92,000 Net Income
+ 6,000 Depreciation Expense
+ 3,200 Loss on sale of investments
= $101,200 cash flow from operating activities

*Note: The decrease in patents would fall under investing activities, not operating.

This problem really doesn't show you much about how cash flows are calculated. Here's a template for the indirect method of calculating cash flows, using net income, that will help you in the future.

INDIRECT METHOD FOR CASH FLOWS
CASH FLOW FROM OPERATING ACTIVITIES:
Net Income
+ Depreciation, Amortization or Depletion
+ Non-operating Losses
- Non-operating Gains
+ any increases in Current Liabilities
+ any decreases in Current Assets
- any decreases in Current Liabilities
- any increases in Current Assets
= Cash Flow from Operating Activities

CASH FLOW FROM INVESTING ACTIVITIES:
+ sell Long-term assets for cash
- buy (construct) Long-term assets for cash
= Cash Flow from Investing Activities

CASH FLOW FROM FINANCING ACTIVITIES:
+ Stock issued for cash
+ Cash borrowed with loans and bonds
- Treasury stock repurchased for cash
- Cash used to repay loans and bonds
- Cash dividends paid
=Cash Flow from Financing Activities

Total Cash Flow (Operating, Investing, Financing)
+ Beginning Cash
= Ending Cash