LUFTEN ALLEMPHIUSTE E25 Blossom Inc., a greeting card company, had the following statements prepared as of December 31, 2020. 12/31/19 BLOSSOM INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 12/31/20 Cash $6,000 Accounts receivable 62,000 Short-term debt investments (available-for-sale) 35,300 Inventory 40.400 Prepaid rent 5.100 Equipment 153,300 Accumulated depreciation-equipment (35,300) Copyrights 46,000 Total assets $312.800 $7,100 50,700 17.900 59,600 3,900 131,200 (25,100) 50,000 $295,300 Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock, $10 par Contributed capital, common stock Retained earnings Total liabilities & stockholders' equity $46,200 3,900 7.900 8,000 59.900 100,000 30,000 56.900 $312.800 $39.700 6,100 4,000 10,100 68,300 100,000 30,000 37.100 $295,300 BLOSSOM INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 Sales revenue $334,625 Cost of goods sold 174,300 Gross profit 160,325 Operating expenses 118,900 Operating income 41,425 Interest expense $11.300 Gain on sale of equipment 2,000 9.300 Income before tax 32,125 Income tax expense 6,425 Net income $25,700 Additional information: 1. 2. Dividends in the amount of $5,900 were declared and paid during 2020. Depreciation expense and amortization expense are included in operating expenses. No unrealized gains or losses have occurred on the investments during the year. Equipment that had a cost of $19,800 and was 70% depreciated was sold during 2020. 3. 4. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a sig -15,000 or in parenthesis e.s. (15,000).) BLOSSOM INC. Statement of Cash Flows Adjustments to reconcile net income to $ QULJCIUNUI 4 : $