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Unformatted text preview: and gains and losses from the sales of assets or retirement of debt. As depreciation expense and amortization expense are deducted in calculating net income (expenses are subtracted from revenues to determine net income), and depreciation and amortization expense do not result in cash payments by the company, depreciation expense and amortization expense are added back to net income. Given the financial statements and information for the Brothers' Quintet, Inc., net income is $6,300. Net income first needs to be adjusted by significant non-cash items from the income statement: depreciation expense and the loss on the sale of the equipment....
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This note was uploaded on 11/15/2011 for the course ACCT 2310 taught by Professor Staff during the Spring '09 term at Texas State.
- Spring '09