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
Using the indirect method,how much was GJ's net cash provided by operating activities?
A)$545,000.
B)$607,000.
C)$514,000.
D)$463,000.

Question

Quizplus · Accepted Answer

Net income + Depreciation expense + Loss on sale of a depreciable asset + Patent amortization expense - Increase in accounts payable - Decrease in prepaid assets - Decrease in accounts receivable + Increase in wages payable - Decrease in unearned revenue = Net cash provided by operating activities$500,000 + $53,000 + $31,000 + $5,000 - $42,000 - $31,000 - $41,000 + $19,000 - $31,000 = $545,000

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