Blossom Ltd., which follows ASPE had the following comparative statement of financial position: Blossom Ltd. Comparative Statement of Financial Position December 31 Assets Cash Accounts receivable Inventory Prepaid insurance Equipment Accumulated depreciation-equipment Patents Total assets Accounts payable Notes payable Salaries and wages payable Income taxes payable Liabilities and Shareholders' Equity $90.600 7,900 15,200 15,900 119.500 267.000 105,000 $621.100 Long-term note payable Common shares Retained earnings Total liabilities and shareholders' equity . Additional information: 2024 $82.500 136,000 81.600 11.300 300,500 (70,100) 79,300 $621,100 2023 $50,400 101,500 122,400 8,400 250,900 (49.900) 99,300 $583,000 $77,700 12,100 7,600 20,200 137,100 267,000 61,300 $583,000 Net income for the fiscal year was $54.500. Equipment that cost $42.000 and was 70% depreciated was sold during 2024, for a gain of $4,000. No patents were purchased or sold during the fiscal year. The current Notes Payable are trade payables issued by Blossom Ltd. for the purchase of inventory. Prepare the operating activities section of a statement of cash flows using the indirect format. (Show amounts that decrease cash flow with either a-sign e.g.-15.000 or in parenthesis eg. (15.000).)
Blossom Ltd., which follows ASPE had the following comparative statement of financial position: Blossom Ltd. Comparative Statement of Financial Position December 31 Assets Cash Accounts receivable Inventory Prepaid insurance Equipment Accumulated depreciation-equipment Patents Total assets Accounts payable Notes payable Salaries and wages payable Income taxes payable Liabilities and Shareholders' Equity $90.600 7,900 15,200 15,900 119.500 267.000 105,000 $621.100 Long-term note payable Common shares Retained earnings Total liabilities and shareholders' equity . Additional information: 2024 $82.500 136,000 81.600 11.300 300,500 (70,100) 79,300 $621,100 2023 $50,400 101,500 122,400 8,400 250,900 (49.900) 99,300 $583,000 $77,700 12,100 7,600 20,200 137,100 267,000 61,300 $583,000 Net income for the fiscal year was $54.500. Equipment that cost $42.000 and was 70% depreciated was sold during 2024, for a gain of $4,000. No patents were purchased or sold during the fiscal year. The current Notes Payable are trade payables issued by Blossom Ltd. for the purchase of inventory. Prepare the operating activities section of a statement of cash flows using the indirect format. (Show amounts that decrease cash flow with either a-sign e.g.-15.000 or in parenthesis eg. (15.000).)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Blossom Ltd., which follows ASPE had the following comparative statement of financial position:
Blossom Ltd.
Comparative Statement of Financial Position
December 31
Assets
Cash
Accounts receivable
Inventory
Prepaid insurance
Equipment
Accumulated depreciation-equipment
Patents
Total assets
Accounts payable
Notes payable
Salaries and wages payable
Income taxes payable
Long-term note payable
Common shares
Retained earnings
Total liabilities and shareholders' equity
Additional information:
.
Liabilities and Shareholders' Equity
$90.600
7,900
15,200
15,900
119.500
267.000
105,000
$621,100
2024
$82.500
136,000
81,600
11,300
300.500
(70,100)
79,300
$621,100
Adjustments to reconcile net income to
net cash provided by operating activities:
2023
$50,400
101,500
122,400
8,400
250,900
(49.900)
99,300
$583,000
Net income for the fiscal year was $54.500.
Equipment that cost $42.000 and was 70% depreciated was sold during 2024, for a gain of $4,000.
$77,700
12,100
7,600
20,200
137,100
267,000
61,300
$583,000
No patents were purchased or sold during the fiscal year.
The current Notes Payable are trade payables issued by Blossom Ltd. for the purchase of inventory.
Prepare the operating activities section of a statement of cash flows using the indirect format. (Show amounts that
decrease cash flow with either a sign e.g. -15.000 or in parenthesis e.g. (15.000).)
$
Blossom Ltd.
Statement of Cash Flows
$
54!
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