The comparative, unclassified statement of financial position for Blossom Ltd shows the following balances at December 31: Blossom Ltd. Statement of Financial Position December 31 Assets 2018 2017 Cash $ 6,000 $ 39,000 Term deposits (maturing in 60 days) 0 44,000 Accounts receivable 79,000 42.000 111,000 75,000 Inventory Land 182.000 234,000 937,000 Buildings Accumulated depreciation-buildings Equipment 529,000 (191,000) (141,000) 101,000 72,000 Accumulated depreciation-equipment (46,000) (22,000) Total assets $1,229,000 $822,000 Liabilities and Shareholders' Equity Accounts payable $ 34,000 $ 74,000 Income tax payable 3,000 6,000 Interest payable 19,000 13,000 Bank loan payable-current portion 51.000 41,000 Bank loan payable-non-current portion 905.000 423,000 Common shares 156,000 181,000 Retained earnings 61,000 84,000 Total liabilities and shareholders' equity $1,229,000 $822,000 Additional information regarding 2018: 1 2. 3. 4. Net income was $12,000 A loss of $25,000 was recorded on the disposal of a small parcel of land. No land was purchased during the year. A gain on the disposal of $17,000 was recorded when old building was sold for was sold for $44,000 cash. A new building was purchased for $530,000 and depreciation expense on buildings for the year was $45,000 Equipment costing $74,000 was purchased while a loss of $11,000 was recorded on equipment that originally cost $45,000 and was sold for $25,000 The company received $517,000 from new bank loans during the year. Dividends were declared and paid during the year. No common shares were issued during the year but some were bought back and retired at the amount they were originally issued at. 5. 6. 7. (a) Prepare the statement of cash flows using the indirect approach. (Show amounts that decrease cash flow with either a - sign eg. -15,000 or in parenthesis eg. (15,000).) BLOSSOM LTD. Statement of Cash Flows-Indirect Method Adjustments to reconcile net income to $ >