Current Attempt in Progress The financial statements of Blossom Ltd., a private company reporting under ASPE, follow: BLOSSOM LTD. Balance Sheet December 31 Assets 2021 2020 Cash $7,563 $10,700 Short-term notes receivable 12,250 21,550 Accounts receivable 28,200 14.200 Inventory 29,700 25.200 Property, plant, and equipment 71,100 77,200 Accumulated depreciation (30,200 ) (24,700 ) Total assets $118,613 $124,150 Liabilities and Shareholders' Equity Accounts payable Income tax payable $25,200 $42,600 3,100 19,100 Notes payable 12,500 9,600 Common shares 23,600 23,600 Retained earnings 54.213 29.250 Total liabilities and shareholders' equity $118,613 $124,150 BLOSSOM LTD. Income Statement Year Ended December 31, 2021 Sales $281,200 Cost of goods sold 192,100 Gross profit 89.100 Operating expenses $36,050 Loss on sale of equipment 2,050 38,100 Profit from operations 51,000 Other revenues and expenses Interest revenue $(1,140) Interest expense 2.050 910 Profit before income tax 50,090 Income tax expense 15.027 Profit $35,063 Additional information: 1. Short-term notes receivable are loans to other companies. During the year, the company collected the outstanding balance at December 31, 2020, and made new loans in the amount of $12,250. 2. Equipment was sold during the year. This equipment cost $15,700 originally and had a carrying amount of $8,650 at the time of sale. 3. Equipment costing $9,600 was purchased in exchange for a $9,600 note payable. 4. Depreciation expense is included in operating expenses. 5. Accounts receivable are from the sale of merchandise on credit. 6. Accounts payable relate to the purchase of merchandise on credit. Prepare a 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).) Adjustments to reconcile profit to BLOSSOM LTD. Cash Flow Statement-Indirect Method $ $ $ Note: Equipment costing $ eTextbook and Media was purchased by issuing a note payable. Save for Later $ $ Attempts: 0 of 3 used Submit Answer