Bloom Corporation had the following 2020 income statement. Sales revenue.................................................................$200,000 Cost of goods sold...........................................................120,000 Gross profit.........................................................................80,000 Operating

Question:

Bloom Corporation had the following 2020 income statement.

Sales revenue.................................................................$200,000
Cost of goods sold...........................................................120,000
Gross profit.........................................................................80,000
Operating expenses (includes depreciation
of $21,000)..........................................................................50,000
Net income......................................................................$ 30,000

The following accounts increased during 2020: Accounts Receivable $12,000, Inventory $11,000, and Accounts Payable $13,000. Prepare the cash flows from operating activities section of Bloom’s 2020 statement of cash flows using the direct method.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...

Fantastic news! We've Found the answer you've been seeking!