Bridgeport Company

Comparative Balance Sheets

December 31

Assets

2022 2021

Cash $21,000 $12,000

Accounts receivable 12,000 8,400

Inventory 16,800 12,000

Property, plant, and equipment 36,000 46,800

Accumulated depreciation (19,200) (14,400)

Total $66,600 $64,800

Liabilities and Stockholders' Equity

Accounts payable $11,400 $9,000

Income taxes payable 4,200 4,800

Bonds payable 10,200 19,800

Common stock 10,800 8,400

Retained earnings 30,000 22,800

Total $66,600 $64,800

Bridgeport Company

Income Statement

For the Year Ended December 31, 2022

Sales revenue

$145,200

Cost of goods sold

105,000

Gross profit

40,200

Selling expenses

$10,800

Administrative expenses

3,600

14,400

Income from operations

25,800

Interest expense

1,800

Income before income taxes

24,000

Income tax expense

4,800

Net income

$19,200

Additional data:

1.Depreciation expense was $10,500.2.Dividends declared and paid were $12,000.3.During the year equipment was sold for $5,100cash. This equipment cost $10,800originally and had accumulated depreciation of $5,700at the time of sale.

Further analysis reveals the following.

1.Accounts payable pertain to merchandise suppliers.

2.All operating expenses except for depreciation were paid in cash.

3.All depreciation expense is in the selling expense category.

4.All sales and purchases are on account.

Enter statement of cash flows for Bridgeport Company using the direct method.(Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Compute free cash flow.(Show a negative free cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)