DJ Company,a manufacturer,has provided the following information pertaining to its recent year of operation:
Cash flow from operating activities,$272,000;
Accounts payable decreased $21,000;
Prepaid assets increased $15,000;
Depreciation expense was $27,000;
Accounts receivable decreased $21,000;
Loss on sale of a depreciable asset was $16,000;
Wages payable increased $10,000;
Unearned revenue decreased $16,000;
Patent amortization expense was $10,000.
How much was DJ's net income?

Question

DJ Company,a manufacturer,has provided the following information pertaining to its recent year of operation:
 Cash flow from operating activities,$272,000;
 Accounts payable decreased $21,000;
Prepaid assets increased $15,000;
 Depreciation expense was $27,000;
 Accounts receivable decreased $21,000;
 Loss on sale of a depreciable asset was $16,000;
 Wages payable increased $10,000;
Unearned revenue decreased $16,000;
 Patent amortization expense was $10,000.
How much was DJ's net income?

Quizplus · Accepted Answer

Net cash inflow from operating activities ($272,000) = Net income (X = $240,000) - Accounts payable decrease ($21,000) - Prepaid asset increase ($15,000) + Depreciation expense ($27,000) + Accounts receivable decrease ($21,000) + Loss on sale of depreciable asset ($16,000) + Wages payable increase ($10,000) - Unearned revenue decrease ($16,000) + Patent amortization expense ($10,000)

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