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Problem 23-01 The following are Blossom Corp.'s comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from
Problem 23-01 The following are Blossom Corp.'s comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to 2020. COMPARATIVE BALANCE SHEETS Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Investment in Myers Co. Loan receivable Total assets 2020 $822,700 1,130,000 1,857,900 3,314,200 (1,173,300) 307,900 251,300 $6,510,700 2019 $706,000 1,174,600 1,710,100 2,974,500 (1,036,900 ) 276,600 Increase (Decrease) $116,700 (44,600 ) 147,800 339,700 (136,400) 31,300 251,300 $705,800 $5,804,900 $952,200 49,600 100,500 $66,700 (19,900 ) (20,300) 400,300 Accounts payable Income taxes payable Dividends payable Lease liability Common stock, $1 par Paid-in capital in excess of par-common stock Retained earnings Total liabilities and stockholders' equity $1,018,900 29,700 80,200 400,300 500,000 1,505,000 2,976,600 $6,510,700 500,000 1,505,000 2,697,600 $5,804,900 279,000 $705,800 Additional information: 1. On December 31, 2019, Blossom acquired 25% of Myers Co.'s common stock for $276,600. On that date, the carrying value of Myers's assets and liabilities, which approximated their fair values, was $1,106,400. Myers reported income of $125,200 for the year ended December 31, 2020. No dividend was paid on Myers's common stock during the year. 2. During 2020, Blossom loaned $299,500 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $48,200, plus interest at 10%, on December 31, 2020. 3. On January 2, 2020, Blossom sold equipment costing $60,600, with a carrying amount of $38,100, for $40,200 cash. 4. On December 31, 2020, Blossom entered into a capital lease for an office building. The present value of the annual rental payments is $400,300, which equals the fair value of the building. Blossom made the first rental payment of $59,900 when due on January 2, 2021. 5. Net income for 2020 was $359,200. 6. Blossom declared and paid the following cash dividends for 2020 and 2019. Declared Paid Amount 2020 December 15, 2020 February 28, 2021 $80,200 2019 December 15, 2019 February 28, 2020 $100,500 Prepare a statement of cash flows for Blossom Corp. for the year ended December 31, 2020, 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).) BLOSSOM CORP. Statement of Cash Flows Adjustments to reconcile net income to
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