KJ Company,a manufacturer,has provided the following information pertaining to its recent year of operation:
Cash flow from operating activities,$136,000;
Accounts payable increased $11,000;
Prepaid assets decreased $8,000;
Depreciation expense was $12,000;
Accounts receivable increased $23,000;
Loss on sale of a depreciable asset was $6,000;
Wages payable decreased $9,000;
Unearned revenue decreased $19,000;
Patent amortization expense was $3,000.
How much was KJ's net income?
A)$185,000
B)$135,000
C)$147,000
D)$131,000

Question

KJ Company,a manufacturer,has provided the following information pertaining to its recent year of operation:
 Cash flow from operating activities,$136,000;
Accounts payable increased $11,000;
Prepaid assets decreased $8,000;
 Depreciation expense was $12,000;
 Accounts receivable increased $23,000;
 Loss on sale of a depreciable asset was $6,000;
Wages payable decreased $9,000;
 Unearned revenue decreased $19,000;
 Patent amortization expense was $3,000.
How much was KJ's net income?
A)$185,000
B)$135,000
C)$147,000
D)$131,000

Quizplus · Accepted Answer

Net cash inflow from operating activities ($136,000) = Net income (X = $147,000) + Accounts payable increase ($11,000) + Prepaid asset decrease ($8,000) + Depreciation expense ($12,000) - Accounts receivable increase ($23,000) + Loss on sale of depreciable asset ($6,000) - Wages payable decrease ($9,000) - Unearned revenue decrease ($19,000) + Patent amortization expense ($3,000)

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