BLOSSOM COMPANY

COMPARATIVE BALANCE SHEET

AS OF DECEMBER 31, 2020 AND 2019

2020 2019

Cash $1,800 $1,130

Receivables 1,750 1,320

Inventory 1,630 1,890

Plant assets 1,910 1,720

Accumulated depreciation (1,190) (1,170)

Long-term investments (held-to-maturity) 1,280 1,410

$7,180 $6,300

Accounts payable $1,230 $910

Accrued liabilities 190 240

Bonds payable 1,400 1,540

Common stock 1,930 1,680

Retained earnings 2,430 1,930

$7,180 $6,300

BLOSSOM COMPANY

INCOME STATEMENT

FOR THE YEAR ENDED DECEMBER 31, 2020

Sales revenue $6,890

Cost of goods sold 4,730

Gross margin 2,160

Selling and administrative expenses 940

Income from operations 1,220

Other revenues and gains

Gain on sale of investments 90

Income before tax 1,310

Income tax expense 550

Net income 760

Cash dividends 260

Income retained in business $500

Additional information:

During the year, $60of common stock was issued in exchange for plant assets. No plant assets were sold in 2020.

Show a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

BLOSSOM COMPANY

STATEMENT OF CASH FLOWS

(INDIRECT METHOD)

(A)

(B)$

Adjustments to reconcile net income to

(C)

(D) $

(E) $

(F) $

(G) $

(H) $

(I) $

$__

(J) $

(K)

(L) $

(M) $__

(N)$

(O)

(P) $

(Q) $

(R) $__

(S)$__

(T) $

(U) $__

(V) $

(W)

(X) $

Condensed financial data of Larkspur Company for 2020 and 2019 are presented below.

LARKSPUR COMPANY

COMPARATIVE BALANCE SHEET

AS OF DECEMBER 31, 2020 AND 2019

2020 2019

Cash $1,820 $1,140

Receivables 1,780 1,290

Inventory 1,590 1,860

Plant assets 1,870 1,710

Accumulated depreciation (1,220) (1,150)

Long-term investments (held-to-maturity) 1,270 1,420

$7,110 $6,270

Accounts payable $1,170 $880

Accrued liabilities 210 240

Bonds payable 1,390 1,580

Common stock 1,930 1,680

Retained earnings 2,410 1,890

$7,110 $6,270

LARKSPUR COMPANY

INCOME STATEMENT

FOR THE YEAR ENDED DECEMBER 31, 2020

Sales revenue $6,930

Cost of goods sold 4,750

Gross margin 2,180

Selling and administrative expenses 940

Income from operations 1,240

Other revenues and gains

Gain on sale of investments 80

Income before tax 1,320

Income tax expense 540

Net income 780

Cash dividends 260

Income retained in business $520

Additional information:

During the year, $70of common stock was issued in exchange for plant assets. No plant assets were sold in 2020.

Show a statement of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

LARKSUR COMPANY

STATEMENT OF CASH FLOWS

DIRECT METHOD

(A)

(B)$

(C)$

(D)$

(E) $__

(NO ENTRY ONLY TOTAL)$__

(F)$

(G)(journal entry only)

(H)$

(I) $__

(J) $

(K) (journal entry only)

(L)$

(M)$

(N) $__

(O)$__

(P)$

(Q) $__

(R)$__

(S)(journal entry only)

(T)$