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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
The following are Blossom Corp.’s comparative
COMPARATIVE BALANCE SHEETS
|
|||||||||
---|---|---|---|---|---|---|---|---|---|
2020
|
2019
|
Increase
(Decrease) |
|||||||
Cash
|
$814,600
|
$706,000
|
$108,600
|
||||||
|
1,129,100
|
1,176,600
|
(47,500
|
)
|
|||||
Inventory
|
1,861,900
|
1,719,500
|
142,400
|
||||||
Property, plant, and equipment
|
3,335,800
|
2,940,300
|
395,500
|
||||||
|
(1,159,600)
|
(1,046,100)
|
(113,500)
|
||||||
Investment in Myers Co.
|
313,100
|
277,300
|
35,800
|
||||||
Loan receivable
|
249,200
|
—
|
249,200
|
||||||
Total assets
|
$6,544,100
|
$5,773,600
|
$770,500
|
||||||
|
|||||||||
Accounts payable
|
$1,013,700
|
$946,000
|
$67,700
|
||||||
Income taxes payable
|
29,900
|
50,000
|
(20,100
|
)
|
|||||
Dividends payable
|
80,200
|
99,800
|
(19,600
|
)
|
|||||
Lease liabililty
|
455,900
|
—
|
455,900
|
||||||
Common stock, $1 par
|
500,000
|
500,000
|
—
|
||||||
Paid-in capital in excess of par—common stock
|
1,502,100
|
1,502,100
|
—
|
||||||
|
2,962,300
|
2,675,700
|
286,600
|
||||||
Total liabilities and
|
$6,544,100
|
$5,773,600
|
$770,500
|
Additional information:
1. | On December 31, 2019, Blossom acquired 25% of Myers Co.’s common stock for $277,300. On that date, the carrying value of Myers’s assets and liabilities, which approximated their fair values, was $1,109,200. Myers reported income of $143,200 for the year ended December 31, 2020. No dividend was paid on Myers’s common stock during the year. | |
2. | During 2020, Blossom loaned $355,300 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $106,100, plus interest at 10%, on December 31, 2020. | |
3. | On January 2, 2020, Blossom sold equipment costing $60,400, with a carrying amount of $38,000, for $40,200 cash. | |
4. | On December 31, 2020, Blossom entered into a capital lease for an office building. The present value of the annual rental payments is $455,900, which equals the fair value of the building. Blossom made the first rental payment of $60,200 when due on January 2, 2021. | |
5. | Net income for 2020 was $366,800. | |
6. | Blossom declared and paid the following cash dividends for 2020 and 2019. |
2020
|
2019
|
|||
---|---|---|---|---|
Declared
|
December 15, 2020 | December 15, 2019 | ||
Paid
|
February 28, 2021 | February 28, 2020 | ||
Amount
|
$80,200 | $99,800 |
Prepare a statement of

Transcribed Image Text:**BLOSSOM CORP. Statement of Cash Flows**
_Header Section:_
- Dropdown selection for specific details or categories.
- Empty space for entering dollar amounts.
_Main Section:_
- **Adjustments to reconcile net income to:**
- Multiple dropdown options for selecting adjustments.
- Corresponding empty fields for entering dollar amounts.
_Total:_
- Calculation area with lines for total amounts.
This structure is designed for inputting and calculating components of a cash flow statement, beginning with net income and adjustments. Dropdowns likely contain specific financial terms or categories, and fields allow for numerical entry, necessary for final cash flow calculations.

Transcribed Image Text:The image displays a form with several dropdown menus and input fields, likely designed for configuring specific financial or product parameters. Below is a detailed description suitable for an educational context:
### Dropdown Menus
The form includes a series of dropdown menus, each indicated by a small arrow, suggesting user interaction is required to select options from a predefined list. The dropdown fields might be used to choose categories or specific items related to financial products or other configurable settings.
### Input Fields
The form also includes various input fields, allowing text entry. These fields might be used for specific numerical or textual data input, such as:
1. **Top Left Section:**
- Sequential dropdown fields for selecting options.
2. **Top Right Section:**
- Three input fields possibly for entering identifiers or quantities.
- One standalone input field for an unspecified purpose.
3. **Middle Right Section:**
- Two input fields aligned vertically.
- Three additional input fields, with one being marked by a dollar sign, indicating a monetary value.
4. **Bottom Section:**
- A single input field marked with a dollar sign, also intended for entering a financial figure.
### Educational Insight
In an educational context, this form could be a practical example for demonstrating how to build interactive web tools for data entry. It highlights the combination of dropdowns for selecting from predefined choices and text boxes for specific input, commonly seen in online financial tools, surveys, and configuration systems.
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