The preparation of a statement of cash flows and balance sheet for 2020 for Blossom Corporation is as follows:
1. BlossomCorporation Corporation
<h3>Statement of Cash Flows</h3>
For the year ended December 31, 2020
<h3>Operating Activities:</h3>
Net Income $55,870
Add Non-Cash Expense:
Loss from sale of equipment 230
Depreciation Expenses 16,540
Amortization Expense 2,500
Adjusted cash $75,140
Changes in working capital:
Increase in current assets (29,000)
Increase in current liabilities 14,770
Cash from operations $60,910
<h3>Investment Activities:</h3>
Sale of equipment $11,770
Building cost (28,770)
Investment in stock (16,000)
Cash from investments ($33,000)
<h3>Financing Activities:</h3>
Bonds payable $51,770
Dividends payment (30,000)
Treasury stock (11,000)
Cash from financing $10,770
Net cash flow $38,680
2. Blossom Corporation
<h3>Balance Sheet at the end of 2020</h3>
Current assets $304,450
Land $31,770
Buildigs $150,540
Equipment $70,000
Accum. depr.-buildings ($37,540)
Accum. depr.-equipment ($12,000)
Long-term stock investment 16,000
Patents 41,770
Amortization of Patents (2,500)
Total assets $562,490
Current liabilities $166,540
Bonds payable $153,540
Common stock $170,770
Retained earnings $71,640
Total liabilities + Equity $562,490
<h3>What are Statements of Cash Flows and Balance Sheets?</h3>
Statements of cash flows and balance sheets are two of the main financial statements prepared periodically by an entity.
The statement of cash flows shows the cash flows from operating, investing, and financial activities.
The balance sheet shows the financial position (assets, liabilities, and equity) of an entity at a point.
<h3>Data and Calculations:</h3>
Blossom Corporation
<h3>Balance Sheet at the end of 2019</h3>
Current assets
(Cash $82,000) $236,770 Current liabilities $151,770
Land 31,770 Bonds payable 101,770
Buildings 121,770 Common stock 181,770
Equipment 91,770 Retained earnings 45,770
Accum. depr.-buildings (31,770 ) Total $481,080
Accum. depr.-equipment (11,000 )
Patents 41,770
Total $481,080
Ending Cash balance = $120,680 ($82,000 + 38,680)
Current assets = $304,450 (236,770 + $29,000 + $38,680)
Land = $31,770
Buildigs = $150,540 ($121,770 + $28,770)
Equipment = $70,000 ($91,770 - $21,770)
Accum. depr.-buildings = $37,540 (31,770 + 5,770)
Accum. depr.-equipment = $12,000 (11,000 - 9,770 + 10,770)
Long-term stock investment 16,000
Patents 41,770
Amortization of Patents (2,500)
Current liabilities $166,540 (151,770 + 14,770)
Bonds payable $153,540 (101,770 + 51,770)
Common stock $170,770 (181,770 - 11,000)
Retained earnings $71,640 (45,770 + $55,870 - 30,000)
Learn about preparing statements of cash flows at brainly.com/question/25645312
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