Answer:
GJ Company
Cash Flow From Operating Activity
Net Income $480,000
Add: Depreciation Expenses $51,000
Add: Patent Amortization Expenses $11,000
<u>Increase in Current Liability and</u>
<u>decrease in current asset</u>
Accounts receivable decreased $40,000
Wages Payable Increased $25,000
Unearned Revenue decreased $29,000
<u>Decrease in Current Liability</u>
<u>and Increase in current asset</u>
Prepaid asset increased ($29,000)
Accounts Payable Decreased ($40,000)
Add: Loss on sale of asset <u>$29,000</u>
Cash Flow From Operating Activity <u>$596,000</u>