Question 5 of 9 View Policies Current Attempt in Progress The comparative unclassified statement of financial position for Blossom Ltd. follow BLOSSOMLTD. Statement of Financial Position December 31 Assets 2021 2020 Cash $50,000 $20.000 Accounts receivable 80,000 70.000 Inventory 170,000 177,000 Estimated inventory returns 5.000 3.000 Long-term investments 70,000 100.000 Equipment 250,000 150.000 Accumulated depreciation (77,000) (30.000 ) Total assets $548,000 $490.000 Liabilities and Shareholders' Equity Accounts payable $22,000 $ 40,000 Liabilities and Shareholders' Equity Accounts payable $22,000 $40,000 Refund liability 8,000 5,000 Bank loan payable (noncurrent) 88,000 145,000 Common shares 215,000 170,000 Retained earnings 215,000 130,000 Total liabilities and shareholders equity $548,000 $490,000 Additional information pertaining to 2021: 1. Net income was $106,000. 2. Sales were $970,000. 3. Cost of goods sold was $750,000. 4. Operating expenses were $40,000, exclusive of depreciation expense 5. Depreciation expense was $47,000. 6. Interest expense was $12,000. 7. Income tax expense was $20,000. 6. Interest expense was $12,000. 7. Income tax expense was $20.000. 8. Long-term investments were sold at a gain of $5,000. 9. No equipment was sold during the year. 10. $57,000 of the bank loan was repaid during the year. 11. Common shares were issued for $45,000. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a -sign e.g. -45,000, or in parenthesis e.g. (45,000).) BLOSSOM LTD. Statement of Cash Flows-Indirect Method Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a sign e.g. -45,000, or in parenthesis e.g. (45,000).) BLOSSOM LTD. Statement of Cash Flows-Indirect Method Adjustments to reconcile net income to $ SA SA 13 < < $ < < < < A S