Question 16 The comparative statement of financial position for Blossom Retailers Ltd. follows: BLOSSOM RETAILERS LTD. Statement of Financial Position December 31 Assets 2018 2017 Cash $ 19,000 $ 8,000 Accounts receivable 57,000 46,000 Inventory 171,000 143,000 Furniture 164,000 81,000 Accumulated depreciation (42,000) (20,000) Total assets $369,000 $258,000 Liabilities and Shareholders' Equity Accounts payable $ 45,000 $ 30,000 Bank loan payable (noncurrent) 104,000 75,000 Common shares 55,000 50,000 Retained earnings 165,000 103,000 Total liabilities and shareholders' equity $369,000 $250,000 Additional information: 1. Net income was $62,000 in 2018. 2. Depreciation expense was $22,000 in 2018. 3. Payments made to the bank pertaining to the bank loan were $10,000 in 2018. Some new loans were obtained that year. 4. Common shares were issued in 2018 and no shares have been bought back by the company. 5. In 2018, no furniture was sold. Prepare a statement of cash flows using the indirect method for 2018. (Show amounts that decrease cash flow with either a sign e.g. -15,000 or in parenthesis e.g. (15,000).) BLOSSOM RETAILERS LTD. Statement of Cash Flows-Indirect Method Adjustments to reconcile net income to