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Please Compute the FREE CASH FLOW

Retained earnings Total Blossom Company Income Statement For the Year Ended December 31, 2025 Sales revenue Cost of goods sold Gross profit Selling expenses Administrative expenses Income from operations Interest expense Income before income taxes Income tax expense Net income $363,000 262,500 100,500 $27,000 9,00036,000 64,500 4,500 60,000 12,000 $48,000 1. Depreciation expense was $26,250. 2. Dividends declared and paid were $30,000. 3. During the year, equipment was sold for $12,750 cash. This equipment originally cost $27,000 and had accumulated depreciation of $14,250 at the time of sale. 4. Bonds were redeemed at their carrying value. 5. Common stock was issued at par for cash. BLOSSOM COMPANY Statement of Cash Flows - Indirect Method For the Year Ended December 31, 2025 Cash Flows from Operating Activities Net Income $48000.00 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense Increase in Accounts Receivable Increase in Inventory Decrease in Income Taxes Payable Increase in Accounts Payable 12000.00 1500.00 6000.00 Net Cash Provided by Operating Activities Cash Flows from Investing Activities Sale of Equipment Net Cash Provided by Investing Activities Cash Flows from Financing Activities Redemption of Bonds Issuance of Common Stock Payment of Dividends Net Cash Used by Financing Activities 57750 12750 12,750.00 24000 6000 4 Net Increase in Cash Cash at Beginning of Period Cash at End of Period