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

Additional information:

1.		Prepaid expenses and accrued liabilities relate to operating expenses.
2.		An unrealized gain on held for trading investments of $7,000 was recorded.
3.		New equipment costing $86,000 was purchased for $20,500 cash and a $65,500 long-term bank loan payable.
4.		Old equipment having an original cost of $60,000 was sold for $1,400.
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 $46,900 of depreciation expense and a $4,100 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 $20,500 cash and issuing a $65,500 bank loan payable.

BLOSSOM, INC. Statement of Financial Position December 31 Assets 2018 2017 Cash $100,000 $47,100 Held for trading investments 121,000 114,000 Accounts receivable 78,000 42,500 Inventory 122,900 92,950 Prepaid expenses 18,800 26,400 Property, plant, and equipment 293,500 267,500 Accumulated depreciation (45,000) (52,600 ) Total assets $689,200 $537,850 Liabilities and Shareholders' Equity Accounts payable $99,000 $74,600 Accrued liabilities 11,2007,200 Bank loan payable 72,000 152,050 Common shares 260,000 175,000 Retained earnings 247,000 129,000 Total liabilities and shareholders' equity $689,200 $537,850 BLOSSOM, INC. Income Statement Year Ended December 31, 2018 Sales Cost of goods sold Gross profit Operating expenses Income from operations Other revenues and expenses Unrealized gain on held for trading investments $7,000 Interest expense (4,750) Income before income tax Income tax expense Net income $580,550 188,850 391,700 116,440 275,260 2,250 277,510 47,000 $230,510 BLOSSOM, INC. Statement of Cash Flows-Direct Method Cash Payments by paying $20,500 cash Note X to the Statement of Cash Flows: During the year, the company purchased equipment costing $ and issuing a $65,500 bank loan payable