Bloom Corporation had the following 2020 income statement. Sales revenue $200,000 120,000 Cost of goods sold Gross profit 80,000 50,000 Operating expenses (Includes depreciation of $21,000) Net Income $30,000 The followtng accounts tncreased durtng 2020: Accounts Receivable $12,000, Inventory $11,000, Accounts Payable $13,000. Prepare the cash flows from operating activitles section of Bloom's 2020 statement of cash flows ustng the Indirect method 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) Adjustments to reconcile net Income to
Bloom Corporation had the following 2020 income statement. Sales revenue $200,000 120,000 Cost of goods sold Gross profit 80,000 50,000 Operating expenses (Includes depreciation of $21,000) Net Income $30,000 The followtng accounts tncreased durtng 2020: Accounts Receivable $12,000, Inventory $11,000, Accounts Payable $13,000. Prepare the cash flows from operating activitles section of Bloom's 2020 statement of cash flows ustng the Indirect method 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) Adjustments to reconcile net Income to
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 13MCQ
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Transcribed Image Text:Bloom Corporation had the following 2020 income statement.
Sales revenue
Cost of goods sold
Gross profit
Operating expenses (Includes depreclation of $21,000)
$200,000
120,000
80,000
50,000
$30,000
Net Income
The followtng accounts Increased during 2020: Accounts Recelvable $12,000, Inventory $11,000, Accounts Payable $13,000. Prepare the cash flows from operating activitles section of Bloom's 2020 statement of cash flows using the Indirect method. (-
amounts hat decrease cash loe with eichers-sign e.g.-15,000 or in parenthesis e.g.(45,000).)
Bloom Corporation
Statement of Cash Flows-Indirect Method (Partial)
Adjustments to reconctle net Income to
Expert Solution
Step 1
Introduction:
Statement of cash flows:
All cash in and out flows are recorded in statement of cash flows.
It tells the exact cash position of the company.
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