- /1 View Policies Current Attempt in Progress Blossom Limited, which follows IFRS, chooses to classify interest and dividends received as well as interest paid as operating activities and dividends paid as financing activities. Blossom had the following information available at the end of 2020: BLOSSOM LIMITED Comparative Statement of Financial Position December 31, 2020 and 2019 2020 2019 Cash $28,000 $0 Accounts receivable 13,300 16,650 FV-NI investments 18,600 27,600 Inventory 42,000 37,800 Prepaid rent 6,820 13,420 Prepaid insurance 2,010 1,290 Supplies 3,000 2,910 Land 126,300 179,500 Buildings 350,000 350,00042,000 37,800 Prepaid rent 6,820 13,420 Prepaid insurance 2,010 1,290 Supplies 3,000 2,910 Land 126,300 179,500 Buildings 350,000 350,000 Accumulated depreciation - Buildings (105,000 ) (87,500 ) Equipment 518,000 404,000 Accumulated depreciation - Equipment (130,000 (112,000 ) Patents 90,000 90,000 Accumulated amortization-Patents (45,000 ) (40,000 Total assets $918,030 $883,670 Temporary bank overdraft $0 $18,800 Accounts payable 22,000 20,000Temporary bank overdraft $0 $18,800 Accounts payable 22,000 20,000 Income tax payable 5,000 6,000 Salaries and wages payable 5,000 1,300 Short-term notes payable (trade) 10,000 10,000 Long-term notes payable (non-trade) 60,000 70,000 Deferred tax liability 30,000 25,000 Bonds payable 375,000 375,000 Common shares 257,030 242,970 Retained earnings 154,000 114,600 Total liabilities and shareholders' equity $918,030 $883,670 ASHLEY LIMITED Income Statement Year Ended December 31, 2020 Sales revenue $1,190,000\f- /1 $ Cash flows from operating activities section under the indirect method to Adjustments to reconcile net income to net cash provided by operating activities: $-/1 E N ' _ Income from operations 113 000 I Other revenues/expenses Gain on disposal of land 7,400 , Investment income (Note 1) 6,500 Interest expense ' (42.100 ) (28,200 ) Income before taxes - 84,800 Income tax expense (28,300 ) , Net income $56,500 Note 1: Investment income generated by (FV-Nl) investments includes dividend income of $2,300 and a gain on disposal of investments of $4,200. ' (a) Prepare a statement of cash ows for Blossom Limited using the direct method, accompanied by a schedule that provides cash ow from operations using the indirect approach. (Show amounts that decrease cash ow with either a - sign e.g. -15,000 or in parenthesis e.g. (15.000). Round answers to 0 decimal places, as. 5,275.) Blossom Limited Statement of Cash Flows ASHLEY LIMITED Income Statement Year Ended December 31, 2020 Sales revenue $1,190,000 Cost of goods sold (781,000 Gross margin 409,000 Operating expenses Selling expenses $39,200 Administrative expenses 124,000 Salaries and wages expense 92,300 Depreciation and amortization expense 40,500 Total operating expenses (296,000 Income from operations 113,000 Other revenues/expenses Gain on disposal of land 7,400 Investment income (Note 1) 6,500\f\fQuestion 2 of 3 - /1 Adjustments to reconcile net income to net cash provided by operating activities