Question

Blossom Company reported net income of $ 173.510 for 2017.Blossom Company also reported depreciation expense of $36,350 and a loss of $ 5,320 on the disposal of plant assets.The comparative balance sheets show an increase in accounts receivable of $ 14,990 for the year, a $ 17,520increase in accounts payable, and a $ 3,960 increase in prepaid expenses. Prepare the operating activities section of the statement of cash flows for 2017. Use the indirect method. (Show amounts that decrease cash flow with either a-sign es.-15,000 or in parenthesis es (15,000)) Blossom Company Partial Statement of Cash Flows Adjustments to reconcile net income to

Answer 1

BLOSSOM COMPANY
Partial Statement of Cash flows
For the Year 2017
Cash flows from operating activities
Net Income		$ 173,510.00
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	$                    36,350.00
Loss on disposal of plant assets	$                      5,320.00
Increase in accounts receivable	$                  (14,990.00)
Increase in accounts payable	$                    17,520.00
Increase in prepaid expenses	$                    (3,960.00)
		$    40,240.00
Net cash provided by operating activities		$ 213,750.00