12-5

The comparative balance sheets for Blossom Company as of December 31 are as follows. Blossom Company Comparative Balance Sheets December 31 Assets 2022 Cash $60,000 Accounts receivable 40,000 2021 $46,300 62,000 Inventory 149,600 143,900 Prepaid expenses 13,500 25,100 Land 147,300 132,900 197,900 197,900 Buildings Accumulated depreciation-buildings (58,600) (34,400) Equipment 230,700 156,900 Accumulated depreciation-equipment (44,200) (35,600 ) $736,200 $695,000 $46,300 $39,600 Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock, $1 par Retained earnings 260,000 260,000 194,000 159,600 235,900 235,800 Total $736,200 $695,000 Additional information: 1. 2. 3. Operating expenses include depreciation expense of $42,000 ($24,200 of depreciation expense for buildings and $17,800 for equipment). Land was sold for cash at book value. Cash dividends of $45,900 were paid. Net income for 2022 was $46,000. Equipment was purchased for $95,300 cash. In addition, equipment costing $21,500 with a book value of $12,300 was sold for $5,100 cash. 34,400 shares of $1 par value common stock were issued in exchange for land with a fair value of $34,400. 4. 5. . . 6. Prepare a statement of cash flows for the year ended December 31, 2022, using the indirect method. (Show amounts that decrease cash flow with either a-sign eg. -15,000 or in parenthesis eg. (15,000).) Blossom Company Statement of Cash Flows Adjustments to reconcile net income to I NO