Use Blizzard Corp's income statement and balance sheet information to calculate the net cash provided by operating activities, using the:
(a) Direct Method
(b) Indirect Method

Blizzard Corp.
Income Statement
For the Year Ended December 31, 2020
Sales (all on credit)		$70,000
Cost of goods sold		22,000
Gross profit from sales		48,000
Depreciation expense	$ 1,400
Salaries and wages	10,500
Rent expense	2,200
Interest expense	680	14,780
Operating income		33,220
Gain on sale of equipment	4,000
Net income		$37,220
Blizzard Corp.
Balance Sheet
December 31,2020
	2020	2019
Cash	142,200	56,980
Accounts receivable	2,600	1,000
Merchandise inventory	12,200	14,200
Non-current investments	102,000	112,800
Equipment	250,000	200,000
Accumulated depreciation, equipment	29,756	28,356
	479,244	356,624
Accounts payable	4,000	6,800
Salaries and wages payable	2,400	1,200
Bonds payable	50,000	63,000
Common shares	200,000	100,000
Retained earnings	222,844	185,624
	479,244	356,624

Answer rating: 100% (QA)

a Direct Method Cash Collected from Accounts receivable Cash paym... View the full answer