GJ Company,a manufacturer,has provided the following information pertaining to its recent year of operation:
Net income,$500,000;
Accounts payable decreased $42,000;
Prepaid assets increased $31,000;
Depreciation expense was $53,000;
Accounts receivable decreased $41,000;
Loss on sale of a depreciable asset was $31,000;
Wages payable increased $19,000;
Unearned revenue decreased $31,000;
Patent amortization expense was $5,000.
How much was GJ's net cash inflow from operating activities?
A)$545,000
B)$607,000
C)$514,000
D)$463,000

Question

GJ Company,a manufacturer,has provided the following information pertaining to its recent year of operation:
 Net income,$500,000;
 Accounts payable decreased $42,000;
Prepaid assets increased $31,000;
 Depreciation expense was $53,000;
 Accounts receivable decreased $41,000;
Loss on sale of a depreciable asset was $31,000;
 Wages payable increased $19,000;
Unearned revenue decreased $31,000;
Patent amortization expense was $5,000.
How much was GJ's net cash inflow from operating activities?
A)$545,000
B)$607,000
C)$514,000
D)$463,000

Quizplus · Accepted Answer

Net cash inflow from operating activities ($545,000) = Net income ($500,000) - Accounts payable decrease ($42,000) - Prepaid asset increase ($31,000) + Depreciation expense ($53,000) + Accounts receivable decrease ($41,000) + Loss on sale of depreciable asset ($31,000) + Wages payable increase ($19,000) - Unearned revenue decrease ($31,000) + Patent amortization expense ($5,000)

GJ Company,a Manufacturer,has Provided the Following Information Pertaining to Its