Respuesta :
The preparation of a statement of cash flows and balance sheet for 2020 for Blossom Corporation is as follows:
1. BlossomCorporation Corporation
Statement of Cash Flows
For the year ended December 31, 2020
Operating Activities:
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
Investment Activities:
Sale of equipment       $11,770
Building cost           (28,770)
Investment in stock      (16,000)
Cash from investments ($33,000)
Financing Activities:
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
Balance Sheet at the end of 2020
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
What are Statements of Cash Flows and Balance Sheets?
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.
Data and Calculations:
Blossom Corporation
Balance Sheet at the end of 2019
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 https://brainly.com/question/25645312
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