Question: Compute cash flow from operating activities using the indirect method. Blue Co. Balance Sheet December 31, 2009 and 2008 2009 2008 Cash $220 $110 Accounts

Compute cash flow from operating activities using the indirect method.

Blue Co. Balance Sheet December 31, 2009 and 2008

2009 2008

Cash $220 $110

Accounts receivable 45 60

Inventory 110 90

Total current assets $375 $260

Property, plant & equipment 140 140

Less: Accumulated depreciation 40 25

Property, plant & equipment, net $100 $115

Total assets $475 $375

Accounts payable $ 40 $ 30

Accrued expenses 10 15

Total current liabilities $ 50 $ 45

Stockholders' equity:

Common stock 200 200

Retained earnings 225 130

Total liabilities and stockholders' equity $475 $375

Blue Co. Income Statement For the Year Ended December 31, 2009

Sales $600

COGS 240

Gross profit $360

Operating and other expenses 265

Net income $ 95

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