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1. (8 points) Presented below is a condensed version of the comparative balance sheets for Bridgeport Corporation for the last two years on December 31
1. (8 points) Presented below is a condensed version of the comparative balance sheets for Bridgeport Corporation for the last two years on December 31 and the income statement for the year ending December 31, 2020. 2020 2019 Assets $ 33,880 26,600 71,995 18,200 76,300 169,750 (36,400) Cash $ 56,560 Accounts receivable 61,460 Inventory 78,750 Prepaid expenses 19,880 Long-term investments 96,600 Plant assets 199,500 Accumulated depreciation-plant assets (35,000 ) Liabilities & Equity Accounts payable 71,400 Accrued expenses 11,550 Bonds Payable (long-term) 77,000 Common stock 154,000 Retained earnings 163,800 Income Statement For the year ended Dec. 31, 2020 Sales revenue Less: Cost of goods sold Operating expense, excluding depreciation Depreciation expense Income tax expense Interest expense Loss on disposal of plant assets Net income 47,110 14,700 102,200 122,500 73,815 $271,922 94,822 8,687 32,550 19,096 3,311 5,250 $108,206 Additional information: During 2020, the following occurred: 1. New equipment was purchased for cash of $70,000. 2. Old plant assets having an original cost of $40,250 and accumulated depreciation of $33,950 were sold for $1,050 cash. 3. Bonds payable matured and were paid off at face value for cash. 4. A cash dividend of $18,221 was declared and paid during the year. 5. New common stock was sold to investors during the year. Required: Create a Statement of Cash Flows for 2020 using the indirect method
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