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12 June, 15:50

The current sections of Blue Spruce Corp.'s balance sheets at December 31, 2019 and 2020, are presented here. Blue Spruce's net income for 2020 was $151,700. Depreciation expense was $24,300. 2019 2018 Current assets Cash $103,000 $98,300 Accounts receivable 108,400 77,900 Inventory 157,700 171,100 Prepaid expenses 26,500 25,100 Total current assets $395,600 $372,400 Current liabilities Accrued expenses payable $15,400 $9,100 Accounts payable 85,200 95,300 Total current liabilities $100,600 $104,400 Prepare the net cash provided by operating activities section of the company's statement of cash flows for the year ended December 31, 2020, using the indirect method.

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  1. 12 June, 16:00
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    Answer and Explanation:

    The preparation of net cash provided by operating activities is shown below:-

    Blue Spruce Corp.'s

    Partial Statement of Cash Flows

    For the Year Ended December 31, 2020

    Particulars Amount

    Net cash flow from operating

    activities

    Net income $151,700

    Adjustments to reconcile

    net income to net cash

    provided by operating activities

    Depreciation expense $24,300

    Increase in Accrued

    Expense payable $6,300

    ($15,400 - $9,100)

    Decrease in inventory $13,400

    ($157,700 - $171,100)

    Increase in prepaid insurance ($1,400)

    ($26,500 - $25,100)

    Increase in accounts receivable ($30,500)

    ($108,400 - $77,900)

    Decrease in accounts payable ($10,100) $2,000

    ($85,200 - $95,300)

    Net cash provided by

    operating activities $153,700
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