Blossom Company reported net income of $173,510 for 2022. Blossom Company also reported depreciation expense of $36,350 and a loss of $5,320 on the disposal of plant assets. The comparative balance sheets show an increase in accounts receivable of $14,990 for the year, a $17,520 increase in accounts payable, and a $3,960 increase in prepaid expenses. Prepare the operating activities section of the statement of cash flows for 2022. Use the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parentheses e.g. (15,000).)
Blossom Company
Partial Statement of Cash Flows
For the Year Ended December 31, 2022
Operating Activities:
Net Income $173,510
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation Expense $36,350
Loss on Disposal of Plant Assets $5,320
Increase in Accounts Receivable ($14,990)
Increase in Accounts Payable $17,520
Increase in Prepaid Expenses $3,960
Net Cash Provided by Operating Activities $221,670