7. GJ Company, a manufacturer, has provided the following information pertaining

Question

7. 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? O $463000o O $514,000 $607,000 $545,000

Explanation / Answer

Net income 500000 Adjustments: Accounts payable decrease -42000 Prepaid assets increase -31000 Depreciation expense 53000 Accounts receivable decrease 41000 Loss on sale of asset 31000 Wages payable increase 19000 Unearned revenue decrease -31000 Patent amortiation expense 5000 Net cash provided by operating activites 545000 Option 4 is correct

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