View Policies Current Attempt in Progress The statement of income and unclassified statement of financial position for Blossom, Inc. follow: BLOSSOM, INC. Statement of Financial Position December 31 Assets 2021 2020 Cash $100,000 $47,100 121,000 114,000 Trading investments 78,000 42,500 Accounts receivable 120,300 90,850 Inventory 2,600 2,100 Estimated inventory returns 18,800 26,400 Prepaid expenses - / 20 Question 7 of 8 121,000 114,000 Trading investments 78,000 42,500 Accounts receivable 120,300 90,850 Inventory 2,600 2,100 Estimated inventory returns 18,800 26,400 Prepaid expenses 294,500 267,500 Equipment (45,000) (52,600) Accumulated depreciation $690,200 $537,850 Total assets Liabilities and Shareholders' Equity $99,000 $74,600 Accounts payable 9,800 6.200 Property tax payable 1,400 1,000 Refund liability 42,000 107,050 Bank loan payable-current portion 81,000 35.000 Bank loan payable-noncurrent portion Liabilities and Shareholders Equity Accounts payable $99,000 $74,600 Property tax payable 9,800 6,200 Refund liability 1,400 1,000 Bank loan payable-current portion 42,000 107,050 Bank loan payable-noncurrent portion 81,000 35,000 Common shares 210,000 185,000 Retained earnings 247,000 129,000 Total liabilities and shareholders' equity $690,200 $537,850 BLOSSOM, INC. Statement of Income Year Ended December 31, 2021 Question 7 of 8 BLOSSOM, INC. Statement of Income Year Ended December 31, 2021 Sales $580,550 Cost of goods sold 188,850 Gross profit 391,700 Operating expenses 116,440 Income from operations 275,260 Other income and expenses Unrealized gain on trading investments $7,000 Interest expense (4,750 ) 2,250 277,510 Income before income tax 47,000 Income tax expense Net income $230,510 Additional information regarding 2021: 1. Prepaid expenses and property tax payable relate to operating expenses. 2. New equipment costing $86,000 was purchased for $20,500 cash and a $65,500 long-term bank loan payable. 3. Old equipment having an original cost of $59,000 was sold for $1,400. 4. . Accounts payable relate to inventory suppliers. 5. Some of the bank loan was repaid during the year. . 6. A dividend was paid during the year. 7. Operating expenses include $46,900 of depreciation expense and a $3,100 loss on disposal of equipment. 8. Common shares were issued for $42,000 cash during the year and some common shares were bought back and retired at the cost they were originally issued at. 8. Common shares were issued for $42,000 cash during the year and some common shares were bought back and retir cost they were originally issued at. (a) Prepare the statement of cash flows, using the indirect method. (Show amounts that decrease cash flow with either a-sign eg. in parenthesis eg. (15,000).) BLOSSOM, INC. Statement of Cash Flows v Year Ended December 31, 2021 Cash flows from operating activities $ 230510 Net income Adjustments to reconcile net income to Cash flows from operating activities Net income $ 230510 Adjustments to reconcile net income to Cash flows from operating activities Depreciation expense $ Loss on disposal of equipment Increase in accounts receivable Increase in inventory Increase in accounts payable Purchase of land Unrealized gain on trading investments Purchase of land Unrealized gain on trading investments $ $ $