Reference no: EM133159322
Question - Blossom Inc. is a private company reporting under ASPE. The following selected account balances were reported in Blossom Inc.'s financial statements at year end:
|
|
2021
|
2020
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|
Cash
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$ 18,000
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$ 8,000
|
|
Buildings
|
825,000
|
725,000
|
|
Equipment
|
387,000
|
337,000
|
|
Land
|
85,000
|
45,000
|
|
Accumulated depreciation-buildings
|
300,000
|
282,500
|
|
Accumulated depreciation-equipment
|
115,000
|
86,000
|
|
Dividends payable
|
5,750
|
2,200
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|
Mortgage payable
|
541,000
|
581,000
|
|
Notes payable
|
335,000
|
304,000
|
|
Common shares: 5,300 shares in 2021; 3,900 in 2020
|
534,000
|
405,000
|
|
Retained earnings
|
191,000
|
92,000
|
|
Cash dividends declared
|
20,000
|
6,000
|
|
Depreciation expense-buildings
|
22,000
|
39,500
|
|
Depreciation expense-equipment
|
47,005
|
25,150
|
|
Gain on sale of equipment
|
800
|
0
|
|
Loss on sale of building
|
7,500
|
0
|
|
Interest expense
|
47,250
|
43,150
|
Additional information:
1. Purchased $70,000 of equipment for $8,000 cash and a note payable for the remainder.
2. Equipment was also sold during the year.
3. Sold a building that originally cost $45,000.
4. Used cash to purchase land and a building.
5. Mortgage payments and notes payable payments included interest and principal amounts.
6. Common shares were issued for cash.
Required -
Q1. Determine the amount of any cash inflows or outflows related to investing activities in 2021. (Hint: Use T accounts to calculate the cash flows.)
Q2. What was the amount of profit reported by Blossom Inc. in 2021?
Q3. Determine the amount of any cash inflows or outflows related to financing activities in 2021. (Hint: Use T accounts to calculate the cash flows.)