Question
Condensed financial data follow forBlossomLtd. E-Perform reports under ASPE. BLOSSOMLTD. Balance Sheet December 31 Assets20212020 Cash $115,890$47,000 Accounts receivable 77,400 42,800Inventory 127,20094,800 Prepaid expenses 38,600
Condensed financial data follow forBlossomLtd. E-Perform reports under ASPE.
BLOSSOMLTD.
Balance Sheet
December 31
Assets20212020Cash
$115,890$47,000
Accounts receivable
77,400
42,800Inventory
127,20094,800
Prepaid expenses
38,600
27,100
Long-term investments
127,300
113,300
Property, plant, and equipment
265,900242,500
Accumulated depreciation
(57,000)(53,900
)Total assets$695,290$513,600Liabilities and Shareholders' EquityAccounts payable
$93,400
$76,500Accrued expenses payable
12,9006,300Notes payable
101,900137,200
Common shares
230,900167,300Retained earnings
256,190126,300Total liabilities and shareholders' equity$695,290$513,600
BLOSSOMLTD.
Income Statement
Year Ended December 31, 2021
Sales
$492,700
Cost of goods sold
187,700
Gross profit305,000
Operating expenses
$59,300
Depreciation expense
46,300
Loss on sale of equipment
7,270
112,870
Profit from operations
192,130
Other expenses
Interest expense
4,810Profit before income tax187,320Income tax expense
44,800Profit
$142,520
Additional information:
1.New equipment costing $80,300was purchased for $24,100cash and a $56,200note payable.
2.Equipment with an original cost of $56,900was sold at a loss of $7,270.
3.Notes payable matured during the year and were repaid.
4.A long-term investment was acquired for cash.
cash flow statement for the year 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).)
BLOSSOMLTD.
Cash Flow StatementIndirect Method
Year Ended December 31, 2021
Month Ended December 31, 2021
December 31, 2021
Financing Activities
Net Cash Provided by Financing Activities
Net Decrease in Cash
Operating Activities
Net Increase in Cash
Net Cash Provided by Operating Activities
Investing Activities
Net Cash Used by Operating Activities
Cash, January 1
Net Cash Used by Investing Activities
Net Cash Used by Financing Activities
Cash, December 31
Net Cash Provided by Investing Activities
Increase in Accrued Expenses Payable
Purchase of Long-term Investments
Retirement of Note Payable
Sale of Equipment
Gain on Sale of Equipment
Increase in Income Taxes Payable
Sale of Common Shares
Decrease in Inventory
Decrease in Income Taxes Payable
Issuance of Notes Payable
Purchase of Equipment
Decrease in Accounts Receivable
Payment of Cash Dividends
Sale of Long-term Investments
Decrease in Accrued Expenses Payable
Payments for Operating Expenses
Increase in Accounts Payable
Increase in Prepaid Expenses
Depreciation Expense
Profit
Decrease in Prepaid Expenses
Collections from Customers
Payments for Taxes
Decrease in Accounts Payable
Payments to Suppliers
Loss on Sale of Equipment
Increase in Inventory
Increase in Accounts Receivable
$Adjustments to Reconcile Profit to
Net Cash Provided by Investing Activities
Investing Activities
Cash, December 31
Net Cash Provided by Operating Activities
Net Cash Used by Financing Activities
Net Cash Used by Investing Activities
Operating Activities
Net Cash Provided by Financing Activities
Net Decrease in Cash
Financing Activities
Net Cash Used by Operating Activities
Net Increase in Cash
Cash, January 1
Decrease in Income Taxes Payable
Decrease in Prepaid Expenses
Sale of Long-term Investments
Retirement of Note Payable
Profit
Sale of Common Shares
Purchase of Long-term Investments
Gain on Sale of Equipment
Decrease in Accrued Expenses Payable
Issuance of Notes Payable
Increase in Inventory
Purchase of Equipment
Loss on Sale of Equipment
Increase in Accrued Expenses Payable
Payments for Taxes
Sale of Equipment
Collections from Customers
Increase in Income Taxes Payable
Payment of Cash Dividends
Decrease in Inventory
Increase in Accounts Payable
Payments to Suppliers
Decrease in Accounts Payable
Depreciation Expense
Payments for Operating Expenses
Decrease in Accounts Receivable
Increase in Accounts Receivable
Increase in Prepaid Expenses
$
Sale of Common Shares
Profit
Increase in Accrued Expenses Payable
Decrease in Accrued Expenses Payable
Sale of Equipment
Sale of Long-term Investments
Loss on Sale of Equipment
Collections from Customers
Decrease in Accounts Receivable
Issuance of Notes Payable
Increase in Income Taxes Payable
Payments for Taxes
Decrease in Prepaid Expenses
Payments for Operating Expenses
Increase in Inventory
Gain on Sale of Equipment
Decrease in Income Taxes Payable
Payment of Cash Dividends
Decrease in Accounts Payable
Increase in Prepaid Expenses
Retirement of Note Payable
Decrease in Inventory
Purchase of Equipment
Increase in Accounts Receivable
Depreciation Expense
Increase in Accounts Payable
Payments to Suppliers
Purchase of Long-term Investments
Payments to Suppliers
Retirement of Note Payable
Depreciation Expense
Payment of Cash Dividends
Increase in Accounts Receivable
Decrease in Accounts Payable
Increase in Income Taxes Payable
Payments for Operating Expenses
Issuance of Notes Payable
Decrease in Accrued Expenses Payable
Decrease in Accounts Receivable
Gain on Sale of Equipment
Sale of Long-term Investments
Increase in Prepaid Expenses
Loss on Sale of Equipment
Sale of Common Shares
Sale of Equipment
Purchase of Equipment
Increase in Accrued Expenses Payable
Decrease in Income Taxes Payable
Decrease in Inventory
Increase in Inventory
Payments for Taxes
Decrease in Prepaid Expenses
Collections from Customers
Increase in Accounts Payable
Purchase of Long-term Investments
Profit
Decrease in Inventory
Sale of Long-term Investments
Collections from Customers
Decrease in Accrued Expenses Payable
Increase in Accrued Expenses Payable
Decrease in Income Taxes Payable
Issuance of Notes Payable
Payments to Suppliers
Payment of Cash Dividends
Purchase of Long-term Investments
Payments for Taxes
Retirement of Note Payable
Gain on Sale of Equipment
Decrease in Accounts Receivable
Increase in Income Taxes Payable
Increase in Accounts Receivable
Increase in Inventory
Increase in Prepaid Expenses
Decrease in Prepaid Expenses
Profit
Increase in Accounts Payable
Purchase of Equipment
Loss on Sale of Equipment
Depreciation Expense
Sale of Equipment
Decrease in Accounts Payable
Payments for Operating Expenses
Sale of Common Shares
Retirement of Note Payable
Decrease in Accounts Receivable
Loss on Sale of Equipment
Decrease in Prepaid Expenses
Sale of Equipment
Purchase of Equipment
Sale of Common Shares
Sale of Long-term Investments
Purchase of Long-term Investments
Increase in Accrued Expenses Payable
Increase in Accounts Payable
Increase in Accounts Receivable
Depreciation Expense
Increase in Prepaid Expenses
Decrease in Accounts Payable
Collections from Customers
Decrease in Accrued Expenses Payable
Increase in Income Taxes Payable
Decrease in Inventory
Increase in Inventory
Gain on Sale of Equipment
Payment of Cash Dividends
Profit
Issuance of Notes Payable
Payments for Taxes
Payments to Suppliers
Payments for Operating Expenses
Decrease in Income Taxes Payable
Loss on Sale of Equipment
Sale of Equipment
Decrease in Prepaid Expenses
Profit
Increase in Income Taxes Payable
Increase in Accounts Receivable
Decrease in Accounts Payable
Decrease in Inventory
Increase in Prepaid Expenses
Issuance of Notes Payable
Retirement of Note Payable
Payments to Suppliers
Depreciation Expense
Collections from Customers
Payment of Cash Dividends
Sale of Common Shares
Increase in Accounts Payable
Sale of Long-term Investments
Gain on Sale of Equipment
Decrease in Accrued Expenses Payable
Increase in Accrued Expenses Payable
Decrease in Income Taxes Payable
Increase in Inventory
Purchase of Long-term Investments
Decrease in Accounts Receivable
Payments for Taxes
Purchase of Equipment
Payments for Operating Expenses
Increase in Accounts Payable
Increase in Inventory
Sale of Equipment
Payments to Suppliers
Profit
Payment of Cash Dividends
Depreciation Expense
Sale of Long-term Investments
Increase in Accrued Expenses Payable
Increase in Income Taxes Payable
Sale of Common Shares
Decrease in Income Taxes Payable
Decrease in Accounts Payable
Purchase of Equipment
Decrease in Accrued Expenses Payable
Increase in Prepaid Expenses
Decrease in Prepaid Expenses
Retirement of Note Payable
Purchase of Long-term Investments
Increase in Accounts Receivable
Decrease in Accounts Receivable
Decrease in Inventory
Gain on Sale of Equipment
Collections from Customers
Issuance of Notes Payable
Loss on Sale of Equipment
Payments for Operating Expenses
Payments for Taxes
Net Cash Used by Investing Activities
Net Decrease in Cash
Operating Activities
Net Cash Used by Financing Activities
Financing Activities
Net Cash Used by Operating Activities
Net Cash Provided by Financing Activities
Net Cash Provided by Investing Activities
Net Increase in Cash
Investing Activities
Cash, January 1
Net Cash Provided by Operating Activities
Cash, December 31
Investing Activities
Operating Activities
Net Cash Provided by Financing Activities
Financing Activities
Net Increase in Cash
Net Cash Used by Operating Activities
Cash, January 1
Net Cash Used by Financing Activities
Cash Payments
Net Decrease in Cash
Net Cash Provided by Investing Activities
Net Cash Provided by Operating Activities
Net Cash Used by Investing Activities
Cash, December 31
Cash Receipts
Payments to Suppliers
Payment of Cash Dividends
Loss on Sale of Equipment
Payments for Operating Expenses
Profit
Increase in Accounts Payable
Increase in Inventory
Increase in Accounts Receivable
Decrease in Accounts Payable
Depreciation Expense
Sale of Long-term Investments
Purchase of Long-term Investments
Collections from Customers
Sale of Common Shares
Retirement of Note Payable
Increase in Prepaid Expenses
Issuance of Notes Payable
Sale of Equipment
Increase in Accrued Expenses Payable
Payments for Taxes
Increase in Income Taxes Payable
Decrease in Income Taxes Payable
Decrease in Accounts Receivable
Decrease in Accrued Expenses Payable
Decrease in Inventory
Decrease in Prepaid Expenses
Gain on Sale of Equipment
Purchase of Equipment
$
Sale of Long-term Investments
Increase in Accrued Expenses Payable
Issuance of Notes Payable
Gain on Sale of Equipment
Increase in Accounts Payable
Purchase of Equipment
Decrease in Accrued Expenses Payable
Increase in Income Taxes Payable
Payment of Cash Dividends
Decrease in Inventory
Increase in Accounts Receivable
Profit
Depreciation Expense
Increase in Prepaid Expenses
Decrease in Accounts Payable
Loss on Sale of Equipment
Sale of Equipment
Decrease in Income Taxes Payable
Payments to Suppliers
Increase in Inventory
Sale of Common Shares
Decrease in Prepaid Expenses
Purchase of Long-term Investments
Payments for Taxes
Collections from Customers
Retirement of Note Payable
Payments for Operating Expenses
Decrease in Accounts Receivable
Payments for Operating Expenses
Gain on Sale of Equipment
Decrease in Accounts Receivable
Sale of Long-term Investments
Decrease in Income Taxes Payable
Sale of Equipment
Decrease in Inventory
Depreciation Expense
Decrease in Prepaid Expenses
Decrease in Accounts Payable
Sale of Common Shares
Increase in Income Taxes Payable
Increase in Prepaid Expenses
Payment of Cash Dividends
Increase in Inventory
Retirement of Note Payable
Loss on Sale of Equipment
Increase in Accounts Receivable
Payments for Taxes
Increase in Accrued Expenses Payable
Issuance of Notes Payable
Payments to Suppliers
Increase in Accounts Payable
Decrease in Accrued Expenses Payable
Purchase of Equipment
Collections from Customers
Purchase of Long-term Investments
Profit
Cash, January 1
Investing Activities
Cash, December 31
Financing Activities
Net Cash Used by Operating Activities
Net Cash Provided by Operating Activities
Operating Activities
Net Cash Used by Investing Activities
Net Decrease in Cash
Net Cash Provided by Investing Activities
Net Increase in Cash
Net Cash Provided by Financing Activities
Net Cash Used by Financing Activities
Net Cash Used by Operating Activities
Net Cash Used by Investing Activities
Net Cash Provided by Financing Activities
Net Increase in Cash
Investing Activities
Cash, December 31
Net Cash Provided by Operating Activities
Net Cash Used by Financing Activities
Net Cash Provided by Investing Activities
Cash, January 1
Operating Activities
Financing Activities
Net Decrease in Cash
Depreciation Expense
Decrease in Accrued Expenses Payable
Issuance of Notes Payable
Retirement of Note Payable
Sale of Common Shares
Profit
Gain on Sale of Equipment
Payment of Cash Dividends
Sale of Equipment
Increase in Accounts Receivable
Increase in Accounts Payable
Decrease in Inventory
Loss on Sale of Equipment
Decrease in Accounts Receivable
Increase in Income Taxes Payable
Purchase of Long-term Investments
Payments for Taxes
Collections from Customers
Decrease in Accounts Payable
Purchase of Equipment
Decrease in Income Taxes Payable
Decrease in Prepaid Expenses
Payments for Operating Expenses
Sale of Long-term Investments
Increase in Inventory
Payments to Suppliers
Increase in Prepaid Expenses
Increase in Accrued Expenses Payable
$
Increase in Income Taxes Payable
Payments for Taxes
Increase in Accounts Payable
Payments for Operating Expenses
Issuance of Notes Payable
Increase in Inventory
Decrease in Accounts Receivable
Gain on Sale of Equipment
Increase in Accounts Receivable
Profit
Purchase of Long-term Investments
Collections from Customers
Loss on Sale of Equipment
Decrease in Accrued Expenses Payable
Decrease in Inventory
Decrease in Accounts Payable
Payment of Cash Dividends
Decrease in Prepaid Expenses
Sale of Common Shares
Increase in Accrued Expenses Payable
Sale of Equipment
Payments to Suppliers
Retirement of Note Payable
Decrease in Income Taxes Payable
Purchase of Equipment
Depreciation Expense
Increase in Prepaid Expenses
Sale of Long-term Investments
Sale of Equipment
Purchase of Equipment
Decrease in Prepaid Expenses
Depreciation Expense
Collections from Customers
Payments for Taxes
Retirement of Note Payable
Payments to Suppliers
Decrease in Inventory
Increase in Income Taxes Payable
Gain on Sale of Equipment
Payments for Operating Expenses
Profit
Purchase of Long-term Investments
Decrease in Accrued Expenses Payable
Increase in Prepaid Expenses
Decrease in Accounts Receivable
Sale of Common Shares
Loss on Sale of Equipment
Increase in Accrued Expenses Payable
Increase in Accounts Payable
Decrease in Income Taxes Payable
Payment of Cash Dividends
Decrease in Accounts Payable
Increase in Inventory
Sale of Long-term Investments
Increase in Accounts Receivable
Issuance of Notes Payable
Net Cash Used by Investing Activities
Net Cash Provided by Operating Activities
Net Cash Used by Financing Activities
Investing Activities
Net Cash Provided by Financing Activities
Cash, January 1
Financing Activities
Net Decrease in Cash
Net Cash Used by Operating Activities
Cash, December 31
Net Increase in Cash
Operating Activities
Net Cash Provided by Investing Activities
Net Cash Provided by Financing Activities
Cash, January 1
Net Cash Used by Investing Activities
Investing Activities
Net Cash Provided by Investing Activities
Net Cash Provided by Operating Activities
Net Cash Used by Operating Activities
Operating Activities
Net Decrease in Cash
Cash, December 31
Net Increase in Cash
Financing Activities
Net Cash Used by Financing Activities
Net Cash Provided by Operating Activities
Financing Activities
Net Cash Used by Investing Activities
Net Cash Used by Financing Activities
Investing Activities
Net Cash Used by Operating Activities
Cash, December 31
Net Decrease in Cash
Net Cash Provided by Financing Activities
Operating Activities
Net Cash Provided by Investing Activities
Cash, January 1
Net Increase in Cash
Net Cash Used by Operating Activities
Net Cash Used by Investing Activities
Net Decrease in Cash
Financing Activities
Net Cash Provided by Financing Activities
Net Cash Used by Financing Activities
Investing Activities
Net Increase in Cash
Net Cash Provided by Operating Activities
Net Cash Provided by Investing Activities
Cash, January 1
Operating Activities
Cash, December 31
$
Note X: Equipment was purchased by paying $cash and issuing a note payable for $.
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