Problem 13-24 Blake Weaver, Blossom Enterprises' controller, is preparing the financial statements for 2016. He has completed the comparative balance sheets and income statement, which follow, and has gathered this additional information: On December 31, 2016, Blossom sold a piece of equipment with an original cost of $25,000 for $30,000 cash The equipment had a book value of $13,000 On February 1, 2016, Blossom issued $100,000 of common stock to raise cash in anticipation of the purchase of a new building later in the year. On February 2, 2016, Blossom took out a ten-year $75,000 long-term loan to provide the remaining funds needed to purchase the building. On May 15, 2016, Blossom paid $150,000 for the new building The company repaid $4,600 of the long-term debt before the end of the year. Blossom Enterprises Income Statement For the Year Ended December 31, 2016 Sales revenue 1,070,000 17,000 Gain on equipment sale Total revenue 1,087,000 Cost of goods sold 700,000 Operating expenses Depreciation expense $30,000 7,400 Interest expense 175,000 Wages expenses Other expenses 16,000 228,400 Income before taxes 158,600 Tax expense 63,400 95,200 Net income Blossom Enterprises Comparative Balance Sheets As of December 31, 2016 2016 2015 Cash 124,200 $40,400 Accounts receivable, net 287,200 269,800 125,000 95,000 Inventory Total current assets 536,400 405,200 Property, plant, & equipment 160,000 297,000 90,000 Accumulated depreciation 60,000 100,000 Net property, plant, & equipment 207,000 743,400 $ 505,200 Total assets Accounts payable $150,000 $175,000 Taxes payable 17,600 20,000 Mortgage payable 70,400 0 195,000 Total liabilities 238,000 Common stock 350,000 250,000 Retained earnings 155,400 60,200 Total stockholders' equity 505,400 310,200 Total liabilities & stockholders' equity $743,400 $ 505,200 Using the indirect method, prepare Blossom Enterprises' statement of cash flows for 2016. (Show amounts that decrease cash flow with either a - sign, e.g. -15,000 or in parentheses, e.g. (15,000).) Blossom Enterprises Statement of Cash Flows For the Year Ended December 31, 2016 Cash flows from financing activities Net income/ (loss) 95200 Adjustments to net income 30000 Depreciation $ Gain on sale of equipment 17000 Increase in accounts receivable 17400 Increase in inventories 30000 Decrease in accounts payable |(25000) Decrease in income taxes payable Net cash provided by Operating activities Cash flows from investing activities Sale of equipment Purchase of building investing by activities Net cash used Cash flows from financing activities v Proceeds from issuing common stock Repayment of long-term debt Net cash provided by financing activities Change in cash Cash, beginning balance Cash, ending balance $ Click if you would like to Show Work for this question: Open Show Work