Assignment 10 - Chapter 13 - /20 TIL Question 7 of 8 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 2021 Assets 2020 Cash $97.000 $47.000 120,000 112.000 Trading investments Accounts receivable Inventory 70,000 40,000 120,000 90,800 Estimated inventory returns 2,300 2,000 Prepaid expenses 18,000 26,000 Equipment 265,000 240,000 Accumulated depreciation (45.000) (52,000) Total assets $647,300 $505,800 Liabilities and Shareholders' Equity Accounts payable $90,000 Property tax payable $70,000 9.000 Refund liability 6.200 1,000 8 + Assignment 10 - Chapter 13 - /20 III Question 7 of 8 $90,000 $70,000 Accounts payable 9,000 6,200 Property tax payable 1,000 800 Refund liability Bank loan payable-current portion 85,000 151,800 22,300 22,000 Bank loan payable-noncurrent portion Common shares 200,000 150,000 Retained earnings 240,000 105,000 Total liabilities and shareholders' equity $647,300 $505,800 BLOSSOM, INC. Statement of Income Year Ended December 31, 2021 Sales Cost of goods sold $492,000 185,400 Gross profit 306,600 Operating expenses Income from operations 116,400 190.200 Other income and expenses Unrealized gain on trading investments $8,000 Interest expense (4.700 200 Assignment 10 - Chapter 13 - /20 III Question 7 of 8 $8,000 (4.700) 3,300 Other income and expenses Unrealized gain on trading investments Interest expense Income before income tax Income tax expense Net income 193,500 40.000 $153,500 Additional information regarding 2021: 1. 2. 3. 4. Prepaid expenses and property tax payable relate to operating expenses. New equipment costing $80,000 was purchased for $20,000 cash and a $60,000 long- Old equipment having an original cost of $55,000 was sold for $1,000. Accounts payable relate to inventory suppliers. Some of the bank loan was repaid during the year. A dividend was paid during the year. Operating expenses include $46,000 of depreciation expense and a $1,000 loss on disp Common shares were issued for $60,000 cash during the year and some common share 5. 6. 7. 8. (a) Prepare the statement of cash flows, using the indirect method. (Show amounts that decrease cash flow with either a-signe.g. - 15,000 or in parenthesis eg. (15,000).) Assignment 10 - Chapter 13 - /20 5 Question 7 of 8 Prepare the statement of cash flows, using the indirect method. (Show amounts that decrease cash flow with either a - sign eg. - 15,000 or in parenthesis e.g. (15,000).) BLOSSOM, INC. Statement of Cash Flows Year Ended December 31, 2021 Cash flows from operating activities 46 To suppliers Adjustments to reconcile net income to $ > (194600) (40000) > > $ $ 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. e Textbook and Media Save for Later Last saved 15 hours ago Saved work will be auto-submitted on the due date. Auto-submission can take up to 10 minutes. Attempts: 0 of 3 used Submit