| | Exercise 23-03 The income statement of Blue Company is shown below. | BLUE COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 | | Sales revenue | | | | $6,610,000 | | Cost of goods sold | | | | | | Beginning inventory | | $1,910,000 | | | | Purchases | | 4,530,000 | | | | Goods available for sale | | 6,440,000 | | | | Ending inventory | | 1,630,000 | | | | Cost of goods sold | | | | 4,810,000 | | Gross profit | | | | 1,800,000 | | Operating expenses | | | | | | Selling expenses | | 450,000 | | | | Administrative expenses | | 680,000 | | 1,130,000 | | Net income | | | | $670,000 | Additional information: | 1. | | Accounts receivable decreased $300,000 during the year. | | 2. | | Prepaid expenses increased $180,000 during the year. | | 3. | | Accounts payable to suppliers of merchandise decreased $280,000 during the year. | | 4. | | Accrued expenses payable decreased $110,000 during the year. | | 5. | | Administrative expenses include depreciation expense of $70,000. | Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2020, for Blue Company, 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).) | BLUE COMPANY Statement of Cash Flows (Partial) choose the accounting period December 31, 2020For the Year Ended December 31, 2020For the Quarter Ended December 31, 2020 | | select an opening section name Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash | | | | select an item Increase in Accounts PayableNet IncomeDepreciation expenseDecrease in Accounts PayableIncrease in Accounts ReceivableIncrease in Prepaid ExpensesDecrease in Prepaid ExpensesDecrease in Accounts ReceivableDecrease in Accrued Expenses PayableIncrease in InventoryDecrease in InventoryIncrease in Accrued Expenses Payable | | $enter a dollar amount | | Adjustments to reconcile net income to | | | | select a subsection name Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash | | | | select an item Decrease in Accounts Receivable Increase in Inventory Increase in Prepaid Expenses Increase in Accrued Expenses Payable Depreciation expense Decrease in Inventory Decrease in Prepaid Expenses Net Income Decrease in Accrued Expenses Payable Decrease in Accounts Payable Increase in Accounts Payable Increase in Accounts Receivable | $enter a dollar amount | | | select an item Decrease in Accounts Receivable Increase in Inventory Decrease in Prepaid Expenses Decrease in Inventory Increase in Accounts Receivable Increase in Prepaid Expenses Net Income Increase in Accounts Payable Decrease in Accrued Expenses Payable Increase in Accrued Expenses Payable Depreciation expense Decrease in Accounts Payable | enter a dollar amount | | | select an item Net Income Decrease in Accounts Payable Depreciation expense Decrease in Accounts Receivable Increase in Accounts Receivable Decrease in Accrued Expenses Payable Increase in Inventory Increase in Accrued Expenses Payable Increase in Prepaid Expenses Increase in Accounts Payable Decrease in Inventory Decrease in Prepaid Expenses | enter a dollar amount | | | select an item Decrease in Inventory Decrease in Accrued Expenses Payable Decrease in Accounts Receivable Increase in Accounts Receivable Decrease in Prepaid Expenses Depreciation expense Net Income Increase in Prepaid Expenses Increase in Inventory Decrease in Accounts Payable Increase in Accrued Expenses Payable Increase in Accounts Payable | enter a dollar amount | | | select an item Net Income Depreciation expense Increase in Accounts Payable Increase in Accounts Receivable Decrease in Inventory Decrease in Accrued Expenses Payable Decrease in Prepaid Expenses Decrease in Accounts Receivable Increase in Inventory Increase in Prepaid Expenses Decrease in Accounts Payable Increase in Accrued Expenses Payable | enter a dollar amount | | | select an item Net Income Decrease in Accrued Expenses Payable Increase in Prepaid Expenses Increase in Accounts Receivable Decrease in Prepaid Expenses Increase in Inventory Increase in Accounts Payable Depreciation expense Decrease in Accounts Receivable Increase in Accrued Expenses Payable Decrease in Accounts Payable Decrease in Inventory | enter a dollar amount | | | | | enter a subtotal of the adjustments | | select a closing section name Cash at Beginning of PeriodCash at End of PeriodCash Flows from Financing ActivitiesCash Flows from Investing ActivitiesCash Flows from Operating ActivitiesNet Cash Provided by Financing ActivitiesNet Cash Provided by Investing ActivitiesNet Cash Provided by Operating ActivitiesNet Cash Used by Financing ActivitiesNet Cash Used by Investing ActivitiesNet Cash Used by Operating ActivitiesNet Decrease in CashNet Increase in Cash | | $enter a total amount for the section | | LINK TO TEXT | LINK TO VIDEO | | | | | | | Question Attempts: 0 of 3 used | | SAVE FOR LATER | SUBMIT ANSWER | | | | |
