Answered

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"Bloom Corporation had the following 2020 income statement. Sales revenue $212,000 Cost of goods sold 125,000 Gross profit 87,000 Operating expenses (includes depreciation of $28,000) 55,000 Net income $ 32,000 The following accounts increased/(decreased) during 2020: Accounts Receivable ($12,000), Inventory $11,000, and Accounts Payable ($13,000). Prepare the cash flows from operating activities section of Bloom's 2020 statement of cash flows using the direct method."

Sagot :

Tundexi

Answer:

$51,000

Explanation:

Purchase = COGS + Increase in inventory

Purchase = 125,000 + 11,000

Purchase = $135,000

                     Cash Flows from Operating Activities

Cash Received from Customers                                   $200,000

(Sales 212,000 - increase in receivable $12,000)  

Cash Payment to Suppliers                                           ($122,000)

(135,000 purchase - 13,000 payable)

Cash Payment for Operating Expenses                        ($27,000)

[55,000 - 28,000]

Net Cash Provided by Operating Activities            $51,000

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