+ Assignment#11 Question 1 of 3 BLOSSOM LTD. Statement of Income Year Ended December 31, 2021 Sales $180,000 Cost of goods sold 110,000 Gross profit 70,000 Operating expenses 50,000 Income from operations 20,000 Interest expense 1,000 Income before income tax 19,000 Income tax expense 3,000 Net income $16,000 Additional information: 1. The bank loan was received in the past to finance the purchase of equipment. 2. Operating expenses included depreciation expense of $11,000 and a loss of $5,000 on the disposal of equipment Prepare the operating activities section of the statement of cash flows, using the direct method. PUFFY LTD. Statement of Cash Flows $ Cash payments $ $ Cash payments LA $