Question

Blossom Company reported net income of $3.3 million in 2017. Depreciation for the year was $169,200, accounts receivable decreased $333,200, and accounts payable decreased $272,900. Compute net cash provided by operating activities using the indirect approach. (Show amounts that decrease cash flow with either a sign e.g. -15,000 or in parenthesis e.g. (15,000).) Blossom Company Statement of Cash Flows-Indirect Approach For the Year Ended December 31, 2017 Cash Flows from Operating Activities * Net Income 3300000 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Decrease in Account Receivable 333200 Decrease in Account Payable 272900 Depreciation Expense 169200 Net Cash Provided by Operating Activities

Answer 1

Blossom Company
Statement of Cash Flow- Indirect Approach
For the Year Ended December 31,2017
Cash Flow From Operating Activities:	$	$
Net Income		3,300,000
Adjustment to Reconcile Net Income to Net Cash
Depreciation Expense(Non Cash Expense)	169,200
Decrease in Account Receivable- (C A)	333,200
Decrease in Account Payable(C L)	-272,900
Total Adjustment		229,500
Net Cash Provided by Operating Activities		3,529,500

C.A= Current Assets and C.L= Current Liabilities

Decrease in Account Receivable refers inflow of cash and Decrease in Account  Payable shows outflow of cash from business.