Blossom Corporation Statement of Financial Position As at May 31 2022 2021 Current assets Cash 43,600 39,680 68,900 246,760 8,680 Accounts receivable Inventory Prepaid rent Total current assets Property, plant, and equipment Less: Accumulated depreciation Net PPE 92,840 233,900 11,000 381,340 802,900 186,000 616.900 364,020 621,860 151,280 470,580 998,240 834,600 Total assets Current liabilities Accounts payable Salaries and wages payable Interest payable Total current liabilities Mortgage payable Total liabilities Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 152,520 75,640 30,540 258,700 93,000 351,700 142,600 89,280 27,980 259,860 124,000 383,860 479,680 166,860 646,540 998,240 347,200 103,540 450,740 834,600 Blossom Corporation Statement of Income For the Year Ended May 31, 2022 Sales 1,860,000 Cost of goods sold 1,016,800 Gross margin 843,200 Expenses Salaries and wages expense 255,440 Interest expense 55,800 Other operating expenses 39,680 Depreciation expense 34,720 Total operating expenses 385,640 Income from Operations 457,560 Income tax expense 76,880 Net Income 380,680 Blossom Corporation Statement of Income For the Year Ended May 31, 2022 Sales 1,860,000 Cost of goods sold 1,016,800 Gross margin 843,200 Expenses Salaries and wages expense 255,440 Interest expense 55,800 Other operating expenses 39.680 Depreciation expense 34,720 Total operating expenses 385,640 Income from Operations 457,560 Income tax expense 76.880 Net Income 380,680 The following is additional information about transactions during the year ended May 31, 2022, for Blossom Corporation. 1. 2. Equipment costing $181,040 was purchased by paying cash. The "other operating expenses" relate to prepaid rent. In order to supplement its cash, Blossom issued 31,000 additional common shares. Cash dividends of $317,360 were declared and paid at the end of the fiscal year. 3. 4. Prepare a statement of cash flows for 2022 using the indirect method. (Show amounts that decrease cash flow with either a-signeg. -15,000 or in parenthesis e.g. (15,000).) BLOSSOM CORPORATION Statement of Cash Flows For the Year Ended May 31, 2022 Cash flows from operating activities Net income $ 380680 Adjustments to reconcile net income to Cash flows from operating activities Depreciation expense $ 34720 Increase in accounts receivable Decrease in salaries and wages payable Increase in prepaid rent Statement of Cash Flows For the Year Ended May 31, 2022 Cash flows from operating activities Net income $ 380680 Adjustments to reconcile net income to Cash flows from operating activities Depreciation expense 34720 Increase in accounts receivable Decrease in salaries and wages payable Increase in prepaid rent Increase in accounts payable Decrease in inventory Increase in interest payable Cash flows from operating activities Cash flows from investing activities Purchase of equipment $ Cash flows from investing activities Cash flows from financing activities $ $