Blossom Inc., a greeting card company, had the following statements prepared as of December 31, 2017. BLOSSOM INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $5,900 $7,000 Accounts receivable 61,500 51,300 Short-term debt investments (available-for-sale) 35,000 17,800 Inventory 40,400 60,200 Prepaid rent 5,000 4,000 Equipment 153,400 129,000 Accumulated depreciation-equipment (35,100) (25,100) Copyrights 46,300 49,600 Total assets $312,400 $293,800 Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock, $10 par Contributed capital, common stock $46,500 4,100 8,100 7,900 60,200 100,000 30,000 $40,200 6,000 4,000 10,000 68,700 100,000 30,000 Retained earnings Total liabilities & stockholders' equity 55,600 $312,400 34,900 $293,800 BLOSSOM INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017 Sales revenue Cost of goods sold Gross profit Operating expenses Operating income Interest expense $11,500 Gain on sale of equipment 2,000 Income before tax Income tax expense Net income $338,750 176,400 162,350 119,600 42,750 9,500 33,250 6,650 $26,600 Additional information: 1. Dividends in the amount of $5,900 were declared and paid during 2017 2. Depreciation expense and amortization expense are included in operating expenses. 3. No unrealized gains or losses have occurred on the investments during the year. 4. Equipment that had a cost of $19,900 and was 70% depreciated was sold during 2017. Prepare a statement of cash flows using the direct method. (Show amounts that decrease cash flow with e a-sign e.g. -15,000 or in parenthesis e.g. (15,000).) BLOSSOM INC. Statement of Cash Flows For the Year Ended December 31, 2017