Presented here are the financial statements of Blossom Company. Blossom Company Comparative Balance Sheets December 31 2025 2024 Assets Cash $94,500 $54,000 Accounts receivable 54,000 37,800 Inventory 75,600 54,000 Property, plant, and equipment 162,000 210,600 Accumulated depreciation (86,400) (64,800) Total $299,700 $291,600 Liabilities and Stockholders' Equity Accounts payable $51,300 $40,500 Income taxes payable 18,900 21,600 Bonds payable 45,900 89,100 Common stock 48,600 37,800 Retained earnings 135,000 102,600 Total $299,700 $291,600 Blossom Company Income Statement For the Year Ended December 31, 2025 Sales revenue $653,400 Cost of goods sold 472,500 Gross profit 180,900 Selling expenses $48,600 Administrative expenses 16,200 64,800 Income from operations 116,100 Interest expense 8,100 Income before income taxes 108,000 Income tax expense 21,600 Net income $86,400 Additional data: 1. Depreciation expense was $47,250. 2. Dividends declared and paid were $54,000. 3. During the year, equipment was sold for $22,950 cash. This equipment originally cost $48,600 and had accumulated depreciation of $25,650 at the time of sale. 4. Bonds were redeemed at their carrying value. 5. Common stock was issued at par for cash. (a) Prepare a statement of cash flows 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).) Statement of Cash Flows - Indirect Method Adjustments to reconcile net income to $ $ > > > > > > > > > > Statement of Cash Flows Cash at Beginning of Period Cash at End of Period Cash Flows from Financing Activities Cash Flows from Investing Activities Cash Flows from Operating Activities Net Cash Provided by Financing Activities Net Cash Provided by Investing Activities Net Cash Provided by Operating Activities Net Cash Used by Financing Activities Net Cash Used by Investing Activities Net Cash Used by Operating Activities Net Decrease in Cash Net Increase in Cash -69 Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Accrued Expenses Payable Decrease in Income Taxes Payable Decrease in Inventory Depreciation Expense Increase in Accounts Payable Increase in Accounts Receivable Increase in Accrued Expenses Payable Increase in Income Taxes Payable Increase in Inventory Issuance of Common Stock Net Income Payment of Dividends Purchase of Equipment Purchase of Land Redemption of Bonds Sale of Equipment Sale of Investments $ -69