A comparative statement of financial position for Bridgeport Industries Inc. follows: BRIDGEPORT INDUSTRIES INC. Statement of Financial Position December 31, 2017 December 31 Assets 2017 2016 Cash $21,700 $34,700 Accounts receivable 105,000 55,600 Inventory 240,000 192,000 Land 78,000 117,000 Equipment 261,000 204,000 Accumulated depreciation-equipment (69,100) (42,200) Total $636,600 $561,100 Liabilities and Shareholders' Equity Accounts payable $52,200 $60,400 Bonds payable 146,400 195,400 Common shares 232,000 183,000 Retained earnings 206,000 122,300 Total $636,600 $561,100 Additional information: Not incase for the fiscalar endin nacabar 21 Additional information: 1. Net income for the fiscal year ending December 31, 2017, was $143,000. 2. Cash dividends of $59,300 were declared and paid. Dividends paid are treated as financing activities. 3. Bonds payable amounting to $49,000 were retired through issuance of common shares. 4. Land was sold at a gain of $6,000. 5. No equipment was sold during the year. (a) Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) BRIDGEPORT INDUSTRIES INC. Statement of Cash Flows December 31, 2017 Cash Flows from Operating Activities Net Income /(Loss) Adjustments to reconcile net income to net cash provided by operating activities: Decrease in Accounts Receivable 7 $ Increase in Accounts Payable Net Cash Provided by Operating Activities Cash Flows from Investing Activities Purchase of Equipment Increase in Inventory 7 Cash Flows from Financing Activities 7 Cash at End of year