Brief Exercise 23-5 Bloom Corporation had the following 2014 income statement. $

Question

Brief Exercise 23-5

Bloom Corporation had the following 2014 income statement.

$204,720

109,770

94,950

49,630

$45,320

The following accounts increased during 2014: Accounts Receivable $14,350; Inventory $12,890; Accounts Payable $13,590. Prepare the cash flows from operating activities section of Bloom’s 2014 statement of cash flows using the indirect method. (Show 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)
For the Year 2014

Adjustments to reconcile net income to

Sales revenue

$204,720

Cost of goods sold

109,770

Gross profit

94,950

Operating expenses (includes depreciation of $22,310)

49,630

Net income

$45,320

Explanation / Answer

Statement of Cash Flow Particulars Amount Total Amount Income        45,320.00 Depreciation        22,310.00 Increase in AR     (14,350.00) Increase in inventory     (12,890.00) Increase in Ap        13,590.00 Cash flow from operating activities            53,980.00

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