The income statement and unclassified statement of financial position for Blossom, Inc. follow:

BLOSSOM, INC. Statement of Financial Position December 31
Assets		2018			2017
Cash		$97,000			$47,000
Held for trading investments		120,000			112,000
Accounts receivable		70,000			40,000
Inventory		122,000			92,800
Prepaid expenses		18,000			26,000
Property, plant, and equipment		265,000			240,000
Accumulated depreciation		(45,000	)		(52,000	)
Total assets		$647,000			$505,800
Liabilities and Shareholders Equity
Accounts payable		$90,000			$70,000
Accrued liabilities		10,000			7,000
Bank loan payable		107,000			173,800
Common shares		200,000			150,000
Retained earnings		240,000			105,000
Total liabilities and shareholders equity		$647,000			$505,800

BLOSSOM, INC. Income Statement Year Ended December 31, 2018
Sales					$492,000
Cost of goods sold					185,400
Gross profit					306,600
Operating expenses					116,400
Income from operations					190,200
Other revenues and expenses
Unrealized gain on held for trading investments		$8,000
Interest expense		(4,700	)		3,300
Income before income tax					193,500
Income tax expense					40,000
Net income					$153,500

Additional information:

1.		Prepaid expenses and accrued liabilities relate to operating expenses.
2.		An unrealized gain on held for trading investments of $8,000 was recorded.
3.		New equipment costing $80,000 was purchased for $20,000 cash and a $60,000 long-term bank loan payable.
4.		Old equipment having an original cost of $55,000 was sold for $1,000.
5.		Accounts payable relate to merchandise creditors.
6.		Some of the bank loan was repaid during the year.
7.		A dividend was paid during the year.
8.		Operating expenses include $46,000 of depreciation expense and a $1,000 loss on disposal of equipment.

(a) Prepare the statement of cash flows, using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Note X to the Statement of Cash Flows: During the year, the company purchased equipment costing $ by paying $20,000 cash and issuing a $60,000 bank loan payable.

BLOSSOM, INC. Statement of Cash Flows-Di rect Method $ Cash Payments $ $ $