Question

Assignment.docxOnline.docx df Ass 11 KB Myw㏄ My Backboard Content-Ba Return to Blackboard Dayis, Managerial Accounting, 3e CALCULATOR PRINTER VERSİON ·BACK NEXT Exercise 13-12 The following items were gathered from Blossom Company's general ledger Purchase of marketable securities Deprecation and amortization expense Deciaration of preferred dividends Increase in Prepaid Assets Loss on sale of equipment Net income Beginning Cash balance Repayment of bank loan Payment for purchase of equipment Increase in Accounts Receivable Stock-based compensation Proceeds from issuing common stock $159,000 49,200 8,000 4,500 3,500 286,800 25,740 123,000 50,750 13,060 178,000 20,000 14,900 15,500 212,330 Decrease in Inventory Decrease in Accounts Payable Ending Cash balance mary Using the indirect method, construct Blossom Company's statement of cash flows. (Show amounts that decrease cash flow 23

Answer 1

STATEMENT OF CASH FLOW: CASH FLOW FROM OPERATING ACTIVITY NET INCOME ADJUSTMENTS: DEPRECIATION & AMORTIZATION EXPENSES 286800 49200 STOCK BASED COPENSATION LOSS ON SALE OF EQUIPMENT INCREASE IN PREPAID ASSETS INCREASE IN ACCOUNT RECEIVABLE 178000 3500 4500 (13060) 14900 15500 INCREASE IN INVENTORY DECREASE IN ACCOUNT PAYABLE NET CASH FLOW FROM OPERATING 499.340 ACTIVITIES CASH FLOW FROM INVESTING ACTIVITIES PURCHASE OF EQUIPMENT PURCHASE OF MARKETABLE SECURITIES 50750 (159000) NET CASH FLOW FROM INVESTING ACTIVITIES (2.09,750) CASH FLOW FROM FINANCING ACTIVITY ISSUE OF COMMON STOCK PROCEED FROM LOAN NET CASH FLOW FROM FINANCING ACTIVITY 20000 123000 1.43,000 NET CASH FLOW 4,32,590 BEGINNING CASH + NET CASH FLOW ENDING CASH (25,740+ 4, 32,590)4.58330