FULL SCREEN PRINTER Problem 22-7 (a) (direct method) SFP accounts of Blossom Inc., which follows IFRS, follow: BLOSSOM INC. Comparative statement of Financial Position Accounts December 31, 2020 and 2019 December 31 Debit accounts 2020 2019 Cash $44,785 $33,400 Accounts receivable 67,940 60,500 Merchandise inventory 29,810 23,850 Long-term FV-NI investments 23,030 40,300 Machinery 29,450 18,250 Buildings 67,140 55,850 Land 7,500 7,500 $269,655 $239,650 Credit accounts Allowance for doubtful accounts Accumulated depreciation- machinery Accumulated depreciation-buildings Accounts payable Accrued liabilities Income taxes payable Long-term note payable--non-trade Common shares Retained earnings $1,080 5,595 13,505 29,495 2,425 850 26,600 150,000 40.105 $269,655 $330 2,230 9,000 24,250 1,180 1,350 31,600 125,000 44.710 $239,650 Additional information: Activate Blossom Inc. has adopted the policy of classifying interest paid as operating activities and dividends paid as financing activities. PRINTE FULL SCREEN Blossom Inc. has adopted the policy of dassifying interest paid as operating activities and dividends paid as financing activities. 1. Cash dividends decared during the year were $17,515. 2. A 20% stock dividend was dedared during the year and $25,000 of retained earnings was capitalized. 3. FV-Nt investments that cost $20,100 and had a fair value at December 31, 2019, of $24,700 were sold during the year for $22.990. 4. Machinery that cost $3,840 and had $750 of depreciation accumulated was sold for $2,210. Blossom's 2020 statement of income is as follows: Sales revenue $643,000 Cost of goods sold 382,000 Gross margin 261,000 Operating expenses (includes $8,620 depreciation and $5,400 bad debts) 180,500 Income from operations 80,500 Loss on disposal of FV-NI investments $(1,710) Interest expense (3,000) Loss on disposal of machinery (880) (5,590) Income before tax 74,910 Income tax expense 37,000 Net Income $37,910 Calculate net cash flow from operating activities using the direct method. (Show amounts that decrease cash flow with e/thera - slone... -15,000 (15,000).) BLOSSOM INC. Flow