Problem 13-23 Your answer is partially correct. Try again. Kate Petusky prepared Blossom Controls' balance sheet and income statement for 2016. Before she could complete the statement of cash flows, she had to leave town to attend to a family emergency. Because the full set of statements must be provided to the auditors today, Blossom's president, Lance Meyers, has asked you to prepare the statement of cash flows. Meyers has provided you with the balance sheets and income statement that Petusky prepared, as well as some notes she made:
Blossom Controls Income Statement For the Year Ended December 31, 2016
Sales revenue $128,800
Cost of goods sold $70,260
Gross margin $58,540
Selling expense $13,040
Administrative expense $8,080
Salaries expense $20,270
Depreciation expense $1,900
Interest expense $4,060
Income before gain and taxes $11,190
Gain on sale of Land $905
Income tax expense $829
Net income $11,266
Blossom Controls Comparative Balance Sheets As of December 31
2016 2015
Cash $5,130 $4,270
Accounts receivable, net $6,380 $5,550
Inventory $31,710 $34,200
Total current assets $43,220 $44,020
Property, plant, & equipment, net $211,790 $215,490
Total Assets $255,010 $259,510
Accounts payable $3,430 $6,120
Accrued expenses $2,580 $2,330
Taxes payable $2,120 $2,930
Bonds payable $60,280 $50,420
Total liabilities $68,410 $61,800
Common stock $125,270 $125,270
Retained earnings $61,330 $72,440
Total stockholders' equity $186,600 $197,710
Total liabilities & stockholders' equity $255,010 $259,510
• Equipment with an original cost of $35,090 was sold for $20,365. The book value of the equipment was $19,460.
• On June 1, 2013, the company purchased new equipment for cash at a cost of $17,660.
• At the end of the year, the company issued bonds payable for $9,860 cash. The bonds will mature on December 31, 2017.
• The company paid $22,376 in cash dividends for the year.
Using the indirect method, prepare Blossom Controls' 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 Control Statement of Cash Flows For the Year Ended December 31, 2016
$ $
Net cash by activities
Net cash by activities
Net cash by activities
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