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Please confirm answers inboxes are correct as well as show how to solve the blank boxes. The comparative statement of financial position for Blossom Corporation
Please confirm answers inboxes are correct as well as show how to solve the blank boxes.
The comparative statement of financial position for Blossom Corporation shows the following noncash current asset and liability accounts at March 31: 2018 2017 Accounts receivable $60,000 $40,000 60,000 Inventory 70,000 Accounts payable 25,000 40,000 Dividends payable 2,000 1,000 Blossom's income statement reported the following selected information for the year ended March 31, 2018: net income was $270,000, depreciation expense was $60,000, and a loss on the disposal of land was $10,000. Blossom uses a perpetual inventory system. Calculate net cash provided (used) by operating activities 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).) BLOSSOM CORPORATION Statement of Cash Flows (Partial)-Indirect Method Month Ended March 31, 2018 Operating activities $ 270,000 Net income Adjustments to reconcile net income to Net cash provided (used) by operating activities $ Depreciation expense 60,000 Loss on disposal of land 10,000 Accounts receivable increase (20,000) (10,000) Inventory increase (15,000) Interest payable decrease $ Net cash provided by operating activitiesStep by Step Solution
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