202131/16 NWP Assessment Player Ul Application FMGT 2100 - Chapter 17 Homework 1 of 7 View Policies Current Attempt in Progress Presented below is the comparative balance sheet for Blossom Inc., a private company reporting under ASPE, at December 31, 2021, and 2020: BLOSSOM INC. Balance Sheet December 31 Assets 2021 Cash $54,000 Accounts receivable 101,000 Inventory 205,000 Long-term investment 101,500 Property, plant, and equipment 535,000 Less: Accumulated depreciation (162,500) $834,000 Liabilities and Shareholders' Equity Accounts payable $57,500 Dividends payable 6,000 Income tax payable 14,000 Long-term notes payable 25,000 Common shares 630,000 Retained earnings 101,500 $834,000 2020 $98,000 75,000 155,500 0 460,000 (140,000) $648,500 $47,000 0 15,000 0 525,000 61,500 $648,500 BLOSSOM INC. Income Statement Year Ended December 31, 2021 Sales $650,000 Cost of goods sold 432,000 Gross profit 218,000 Operating expenses $147,500 Loss on sale of equipment 3,000 150,500 Profit from operations 67,500 https://assessment.education.wley.comwas'uliziassessment-playerindex.html?launchid=768466b8-1227-41d-bc25-750030e8792btiquestion 1/3 FMGT 2100 - Chapter 17 Homework 1 of 7 -/1 lii 1. Additional information: Cash dividends of $15,000 were declared. 2. A long-term investment was acquired for cash at a cost of $101,500. 3. Depreciation expense is included in the operating expenses. 4. The company issued 10,500 common shares for cash on March 2, 2021. The fair value of the shares was $10 per share. The proceeds were used to purchase additional equipment 5. Equipment that originally cost $30,000 was sold during the year for cash. The equipment had a carrying value of $9,000 at the time of sale. The company issued a note payable for $28,000 and repaid $3,000 by year end. 7. All purchases of inventory are on credit. Accounts Payable is used only to record purchases of inventory. 6. 8. Prepare a cash flow statement for the year using the indirect method. (Show amounts that decrease cash flow with either a - sign eg. -15,000 or in parenthesis eg. (15,000).) BLOSSOM INC. Cash Flow Statement - Indirect Method $ Adjustments to reconcile profit to $ > 2021/3/16 NWP Assessment Player Ul Application FMGT 2100 - Chapter 17 Homework 1 of 7 - / 1 III $ e Textbook and Media Save for Later Attempts: 0 of 3 used Submit