Question

The current sections of Blossom Rentals balance sheets at December 31, 2021, and 2020, are presented here. Blossom’ profit for 2021 was $146,880. Depreciation expense was $23,040. 2021 2020 Current assets Cash $100,800 $95,040 Accounts receivable 105,600 85,440 Inventory 151,680 165,120 Prepaid expenses 25,920 21,120 Total current assets $384,000 $366,720 Current liabilities Accrued expenses payable $14,400 $4,800 Accounts payable 81,600 88,320 Total current liabilities $96,000 $93,120 Prepare the net cash provided by operating activities section of the company’s statement of cash flows for the year ended December 31, 2021, using the indirect method

Answer 1

Answer:

According to the given data

Blossom Rentals
company’s statement of cash flows
for the year ended December 31, 2021
	(in $)	(in $)
Net Income		146,880
Adjustments to reunit profit to
cash flow
Depreciation	23,040
Current assets
Increase in Acct. Receivables	-20,160
Decrease inventory	13,440
Increase in Prepaid Expenses	-4,800
Current Assets
Increase in payable accrused expenses	9,600
Decrease in Acct. Payablees	-6720
		14,400
Net Cash Flow		161,280

Finally, the net cash flow from operating activities==>$161,280

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