Problem 23-02 Your answer is partially correct. Try again. The comparative balance sheets for Blossom Corporation show the following information. December 31 2020 2019 Cash $33,600 $13,200 Accounts receivable 12,400 10,000 Inventory 12,100 9,000 Available-for-sale debt investments -0- 3,000 Buildings -0- 29,700 Equipment 44,800 20,000 Patents 5,000 6,300 $107,900 $91,200 Allowance for doubtful accounts $3,100 $4,400 Accumulated depreciation-equipment 2,000 4,500 Accumulated depreciation-building -0- 5,900 Accounts payable 5,000 3,000 Dividends payable -0- 5,000 Notes payable, short-term (nontrade) 3,000 3,900 Long-term notes payable 31,000 25,000 Common stock 43,000 33,000 Retained earnings 20,800 6,500 $107,900 $91,200Additional data related to 2020 are as follows. 1. Equipment that had cost $11,100 and was 40% depreciated at time of disposal was sold For $2,500. 2. $10,000 of the long-term note payable was paid by issuing common stock. 3. Cash dividends paid were $5,000. 4. 0n January 1, 2020, the building was completely destroyed by a ood. Insurance proceeds on the building were $25,500 [net of $2,000 taxes}. 5. Debt Investments {avallable-forsale} were sold at $1,200 above their cost. The company has made similar sales and Investments in the past. Ii. Eash was paid for the acquisition of equipment. 2. A long- -term note for $16, 000 was Issued for the acquisition of equipment. 0. Interest of $2,100 and Income taxes of $6, 500 were paid In cash. Prepare a statement of cash flows using the Indirect method. [Show amount that decrease cash ow with either a - sign e.g. 45,000 or in parenthesis my. (15,000).) BLOSSOM CORPORATION Statement of Cash Flows X For the Year Ended December 31, 2020 Cash Flows from Operating Activities Net Income EX 14,700 Adjustments to reconcile net income to Net Decrease in Cash Loss on Sale of Equipment X 4,100 Gain from Flood Damage X (7,500) Gain on Sale of Investments (1,800) Depreciation Expense 1,900 Increase in Inventory (3,100) Increase in Accounts Receivable (Net) (3,500) Increase in Accounts Payable 1,800 Patent Amortization 1,400 x (6,700) Net Cash Provided by Operating Activities + x 3,000Cash Flows from Investing Activities x Payment of Short-term Note Payable x (19,800) Sale of Equipment 2,500 Gain on Sale of Investments 4,900 Proceeds from Flood Damage to Building 31,000 Net Cash Provided by Investing Activities # X 18,600 Cash Flows from Financing Activities Payment of Short-term Note Payable x (1,100) Payment of Dividends (5,000) X Net Cash Provided by Financing Activities (6,100) v EX Net Increase in Cash 20,500 Cash, January 1, 2020 X 13,100 Cash, December 31, 2017 33,600Supplemental disclosures of cash flow information: Cash Paid During the Year for Interest 2,100 Cash Paid During the Year for Income Taxes 6,500 Noncash Investing and Financing Activities # Retired Notes Payable by Issuing Common Stock # 10,000 Purchased Equipment by Issuing Notes Payable 16,000 26,000