The following information is available for Blossom Company for the year ended December 31, 2020. Beginning cash balance $ 47,610

Question

Nadusha1986 [10]

3 years ago

14

The following information is available for Blossom Company for the year ended December 31, 2020. Beginning cash balance $ 47,610

Accounts payable decrease 3,915 Depreciation expense 171,396 Accounts receivable increase 8,676 Inventory increase 11,638 Net income 300,578 Cash received for sale of land at book value 37,030 Cash dividends paid 12,696 Income taxes payable increase 4,973 Cash used to purchase building 305,762 Cash used to purchase treasury stock 27,508 Cash received from issuing bonds 211,600 Prepare a statement of cash flows using the indirect method

Business

1 answer:

soldier1979 [14.2K] · Answer 1 · 2022-05-26T16:54:26+03:00

Answer:

<h2> Blossom Company</h2><h2> Statement of Cash Flows</h2>

December 31, 2020

Cash flow from operating activities

Net income $300,578

Adjustments to reconcile net income: $159,970

Depreciation expense $171,396
- Accounts receivable increase ($8,676)
- Inventory increase ($11,638)
Accounts payable decrease $3,915
Income taxes payable increase 4,973

Net cash provided from operating activities $460,548

Cash flow from investing activities

Sale of land at book value $37,030

- Purchase of building ($305,762)

Net cash flow from investing activities ($268,732)

Cash flow from financing activities

Issuance of bonds $211,600

- Purchase of treasury stock ($27,508)

- Dividends paid ($12,696)

Net cash flow from financing activities $171,396

Net increase in cash during the year $363,212

<u>Beginning cash balance $47,610 </u>

Cash balance at December 31, 2020 $410,822