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Blossom Ltd. reported the following for the fiscal year 2021: BLOSSOM LTD. Income Statement Year Ended September 30, 2021 Sales $560,000 Cost of goods sold
Blossom Ltd. reported the following for the fiscal year 2021:
BLOSSOM LTD. Income Statement Year Ended September 30, 2021 | |||||
Sales | $560,000 | ||||
Cost of goods sold | 315,000 | ||||
Gross profit | 245,000 | ||||
Operating expenses | $ 86,000 | ||||
Depreciation expense | 11,000 | ||||
Gain on sale of land | (21,000 | ) | 76,000 | ||
Profit before income tax | 169,000 | ||||
Income tax expense | 42,250 | ||||
Profit | $126,750 |
Additional information: | ||
1. | Accounts receivable decreased by $14,000 during the year. | |
2. | Inventory increased by $5,500 during the year. | |
3. | Prepaid expenses decreased by $3,500 during the year. | |
4. | Accounts payable to suppliers increased by $9,000 during the year. | |
5. | Accrued expenses payable increased by $3,000 during the year. | |
6. | Income tax payable decreased by $4,800 during the year. |
Prepare the operating activities section of the cash flow statement using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
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