Blossom Ltd. Statement of Financial Position December 31 Assets 2024 2023 Cash $51,500 $19,000 Term deposits (maturing in 60 days) 5,500 1,000 Accounts receivable 82,000 77,500 Inventory 170,000 182,000 Estimated inventory returns 5,000 3,000 Long-term investments 77,000 150,000 Equipment 250,000 162,000 Accumulated depreciation (74,000) (38,000) Total assets $567,000 $556,500 Liabilities and Shareholders' Equity Accounts payable $24,000 $49,000 Refund liability 7,000 5,000 Bank loan payable (non-current) 146,000 194,500 Common shares 195,000 171,000 Retained earnings 195,000 137,000 Total liabilities and shareholders' equity $567,000 $556,500 Additional information pertaining to 2024: 1. Net income was $104,800. 2. Sales were $980,000. 3. Cost of goods sold was $750,000. 4. Operating expenses were $49,000, exclusive of depreciation expense. 5. Depreciation expense was $36,000. 6. Interest expense was $18,000. 7. Income tax expense was $28,000. Long-term investments were sold at a gain of $5,800. These investments are carried at their cost, so gains and losses on these investments are recorded only when the investments are sold. 8. 9. No equipment was sold during the year. 10. $48,500 of the bank loan was repaid during the year. 11. Common shares were issued for $24,000. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a -sign e.g. -45,000, or in parenthesis e.g. (45,000).) BLOSSOM LTD. Statement of Cash Flows-Indirect Method Adjustments to reconcile net income to > > $ $ $