Blossom Company Income Statement For the Year Ended December 31, 2025 Service revenue Operating expenses, excluding depreciation $921,000 Depreciation expense Loss on disposal of plant assets Income before income taxes Income tax expense Net income $1,455,000 82,500 24,000 1,027,500 427.500 84,000 $343,500 Blossom's balance sheets contained the following comparative data at December 31. 2025 2024 Accounts receivable $105,000 $90,000 Accounts payable 61,500 48,000 Income taxes payable 19,500 10,500 13 Accounts payable pertain to operating expenses. Prepare the operating activities section of the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign eg.-15,000 or in parenthesis e.g. (15,000).)
Blossom Company Income Statement For the Year Ended December 31, 2025 Service revenue Operating expenses, excluding depreciation $921,000 Depreciation expense Loss on disposal of plant assets Income before income taxes Income tax expense Net income $1,455,000 82,500 24,000 1,027,500 427.500 84,000 $343,500 Blossom's balance sheets contained the following comparative data at December 31. 2025 2024 Accounts receivable $105,000 $90,000 Accounts payable 61,500 48,000 Income taxes payable 19,500 10,500 13 Accounts payable pertain to operating expenses. Prepare the operating activities section of the statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign eg.-15,000 or in parenthesis e.g. (15,000).)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
answer with compulsory explanation , computation for each steps answer in text form with proper format
![Blossom Company
Income Statement
For the Year Ended December 31, 2025
Service revenue
Operating expenses, excluding depreciation $921,000
Depreciation expense
Loss on disposal of plant assets
Income before income taxes
Income tax expense
Net income
$1,455,000
82,500
24,000
1,027,500
427.500
84,000
$343,500
Blossom's balance sheets contained the following comparative data at December 31.
2025
2024
Accounts receivable
$105,000 $90,000
Accounts payable
61,500
48,000
Income taxes payable
19,500
10,500
13
Accounts payable pertain to operating expenses.
Prepare the operating activities section of the statement of cash flows using the indirect method. (Show amounts that decrease cash flow
with either a-sign eg.-15,000 or in parenthesis e.g. (15,000).)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3754f354-1376-462b-82aa-8e34c0b029c0%2F0300b8e9-39af-4991-afce-2ff67cb20580%2Fbuvaio4_processed.png&w=3840&q=75)
Transcribed Image Text:Blossom Company
Income Statement
For the Year Ended December 31, 2025
Service revenue
Operating expenses, excluding depreciation $921,000
Depreciation expense
Loss on disposal of plant assets
Income before income taxes
Income tax expense
Net income
$1,455,000
82,500
24,000
1,027,500
427.500
84,000
$343,500
Blossom's balance sheets contained the following comparative data at December 31.
2025
2024
Accounts receivable
$105,000 $90,000
Accounts payable
61,500
48,000
Income taxes payable
19,500
10,500
13
Accounts payable pertain to operating expenses.
Prepare the operating activities section of the statement of cash flows using the indirect method. (Show amounts that decrease cash flow
with either a-sign eg.-15,000 or in parenthesis e.g. (15,000).)
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