Bloom Corporation had the following 2014 income statement. $201,930 100,860 101,
ID: 2469383 • Letter: B
Question
Bloom Corporation had the following 2014 income statement.
$201,930
100,860
101,070
53,710
$47,360
The following accounts increased during 2014: Accounts Receivable $13,970; Inventory $11,580; Accounts Payable $12,980. Prepare the cash flows from operating activities section of Bloom’s 2014 statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Bloom Corporation
Statement of Cash Flows-Indirect Method (Partial)
For the Year 2014
Adjustments to reconcile net income to
Warning
Don't show me this message again for the assignment
Ok
Cancel
Open Show Work
Sales revenue$201,930
Cost of goods sold100,860
Gross profit101,070
Operating expenses (includes depreciation of $23,620)53,710
Net income$47,360
Explanation / Answer
Cash Flow statement is prepared as under:
Bloom Corporation Statement of Cash Flows For the year ended December 31, 2014 Particulars Amount ($) Amount ($) Net Income 47,360 Add: Depreciation 23,620 Increase in Accounts Receivable -13,970 Increase in Inventory -11,580 Increase in Accounts Payable 12,980 Net Cash flows from Operating Activities 58,410