Question

The comparative statement of financial position of Blue Spruce Corporation as at December 31, 2020, follows: BLUE SPRUCE CORPORATION Statement of Financial Position December 31 December 31 Assets 2020 2019 Cash $ 53,500 $ 11,900 Accounts receivable 89,600 87,200 Equipment 26,200 21,700 Less: Accumulated depreciation (9,800 ) (10,800 ) Total $ 159,500 $ 110,000 Liabilities and Shareholders’ Equity Accounts payable $ 20,300 $ 15,500 Common shares 100,000 79,600 Retained earnings 39,200 14,900 Total $ 159,500 $ 110,000 Net income of $37,600 was reported and dividends of $13,300 were declared and paid in 2020. New equipment was purchased, and equipment with a carrying value of $4,500 (cost of $11,500 and accumulated depreciation of $7,000) was sold for $7,600. Prepare a statement of cash flows using the indirect method for cash flows from operating activities. Assume that Blue Spruce prepares financial statements in accordance with ASPE.

Answer 1

I have made the entire cash flow, please use only the Operating Section

Blue Spruce Corporation
Statement of Cash Flows
For the year ended December 31, 2020
Cash flows from Operating Activities	$	$
Net Income		37,600
Adjustments to reconcile net income to net cash provided by operations
Depreciation expense	6,000
Gain on sale of investing activities	-3,100
Increase in operating current assets other than cash	-2,400
Increase in operating current liabilities	4,800
		5,300
Net cash provided by Operating Activities		42,900
Cash Flows from Investing Activities
Cash paid for purchase of equipment	-16,000
Cash received from sales of equipment	7,600
Net cash used in Investing Activities		-8,400
Cash Flows from Financing Activities
Proceeds from issuance of shares	20,400
Payment of dividends	-13300
Net cash flows from Financing Activities		7,100
Net increase in cash		41,600
Beginning cash balance		11900
Ending cash balance		53,500