Question 1 The following are the financial statements of Blossom Company, BLOSSOM COMPANY Balance Sheet December 31 Assets 2021 2020 Cash $45,600 $24,000 Accounts receivable 36,000 16,800 Inventory 32,400 24,000 Equipment 72,000 93,600 Accumulated depreciation-equipment (34,800) (28,800) Total $151,200 $129,600 Liabilities and Shareholders' Equity Accounts payable $28,800 $18,000 Income taxes payable 8,400 9,600 Notes payable 32,400 39,600 Common shares 21,600 16,800 Retained earnings 60,000 45,600 Total $151,200 $129,600 BLOSSOM COMPANY Income Statement For the Year Ended December 31, 2021 Sales $290,400 Cost of goods sold 210,000 Gross profit 80,400 Operating expenses 28,800 Income from operations 51,600 Interest expense 3.600 Total $151,200 $129,600 BLOSSOM COMPANY Income Statement For the Year Ended December 31, 2021 Sales $290,400 Cost of goods sold 210,000 Gross profit 80,400 Operating expenses 28,800 Income from operations 51,600 Interest expense 3,600 Income before income taxes 48,000 Income tax expense 9,600 Profit $38,400 Additional Information: 1. Dividends declared and paid were $24,000. Blossom reports under ASPE. 2. During the year, equipment was sold for $10,200 cash. This equipment cost $21,600 originally and had a carrying value of $10,200 at the time of sale. 3. All depreciation expense, $17,400, is in the operating expenses. 4. All sales and purchases are on account Prepare a statement of cash flows using the Indirect method. (Show amounts that decrease cash flow with either a sign .g. -15,000 or in parenthesis eg. (15,000).) BLOSSOM COMPANY Cash Flow Statement. Indirect Method BLOSSOM COMPANY Cash Flow Statement - Indirect Method Adjustments to reconcile profit to