Bloom Corporation had the following 2014 income statement. $214,850 100,170 114,

Question

Bloom Corporation had the following 2014 income statement.

$214,850

100,170

114,680

49,400

$65,280

The following accounts increased during 2014: Accounts Receivable $11,250; Inventory $12,630; Accounts Payable $13,710. Prepare the cash flows from operating activities section of Bloom’s 2014 statement of cash flows using the direct method.

Prepare statement of cash flows:

Bloom Corporation
Statement of Cash Flows-Direct Method (Partial)
For the Year 2014

Sales revenue

$214,850

Cost of goods sold

100,170

Gross profit

114,680

Operating expenses (includes depreciation of $24,180)

49,400

Net income

$65,280

Explanation / Answer

cash flow from operating activity collection from receivable    [214850 -11250] 203600 less; payment to suppliers   [100170 -12630 +13710] -101250 payment of expense    [49400-24180] -25220 cash flow from operating activity 77130

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