James Johnson, Blossom Enterprises' controller, is preparing the financial statements for 2021 as follows, Blossom Instruments Comparative Balance Sheets As of December 31 2021 Cash $123,000 Accounts receivable, net 288,000 Inventory 128,600 Total current assets 539,600 Property, plant, & equipment, net 298,000 Accumulated depreciation 91.000 Net property, plant, & equipment 207.000 Total Assets $746,600 Accounts payable $151.000 Taxes payable 19,600 Mortgage payable 111,000 Total liabilities 281,600 Common stock 351,000 Retained earnings 114,000 Total stockholders' equity 465,000 Total liabilities & stockholders' equity $746,600 2020 $81,000 271,000 98,000 450,000 161.000 61.000 100,000 $550,000 $177,000 21,000 0 198,000 291,000 61,000 352.000 $550,000 Blossom Instruments Income Statement For the Year Ended December 31, 2021 Sales revenue $1,081,000 Cost of goods sold 701,000 Operating expenses Depreciation expense $43,000 Interest expense 8,000 Wages expenses 176,000 Other expenses 17,000 244,000 Income before taxes 136,000 Loss on equipment sale 4,000 Tax expense 64,000 Net income $68,000 He has gathered this additional information: . On December 31, 2021, Blossom sold a piece of equipment with an original cost of $26,000 for $12,000 cash. The equipment had a book value of $14,000. On February 1, 2021, Blossom issued $61.000 of common stock to raise cash in anticipation of the purchase of a new building later in the year. On February 2, 2021, Blossom took out a ten-year $111.000 long-term loan to provide the remaining funds needed to purchase the building On May 15, 2021, Blossom paid $163,000 for the new building. The company paid a cash dividend of $10,000. . . Blossom Instruments Statement of Cash Flows For the year ended December 31, 2021 Cash flows from operating activities Net income 68,000 Adjustments to net income -> Depreciation $ > C >