Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bridgeport Company had available at the end of 2025 the following information. begin{tabular}{|c|c|c|} hline multicolumn{3}{|c|}{BridgeportCompanyComparativeBalanceSheetsAsofDecember31,2025and2024} hline & 2025 & 2024 hline Cash &

image text in transcribedimage text in transcribedimage text in transcribed Bridgeport Company had available at the end of 2025 the following information. \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{BridgeportCompanyComparativeBalanceSheetsAsofDecember31,2025and2024} \\ \hline & 2025 & 2024 \\ \hline Cash & $10,080 & $3,990 \\ \hline Accounts receivable & 20,610 & 13,020 \\ \hline Short-term investments & 21,920 & 30,300 \\ \hline Inventory & 41,730 & 34,660 \\ \hline Prepaid rent & 2,990 & 12,120 \\ \hline Prepaid insurance & 2,080 & 89 \\ \hline Supplies & 990 & 75 \\ \hline Land & 125,000 & 176,150 \\ \hline Buildings & 348,700 & 348,700 \\ \hline Accumulated depreciation-buildings & (104,230) & (87,800) \\ \hline Equipment & 525,470 & 403,120 \\ \hline Accumulated depreciation-equipment & (130,640) & (111,690) \\ \hline Patents & 45,160 & 49,980 \\ \hline Total assets & $909,860 & $872,714 \\ \hline Accounts payable & $21,870 & $32,120 \\ \hline Income taxes payable & 5,050 & 3,970 \\ \hline Salaries and wages payable & 5,050 & 3,020 \\ \hline Short-term notes payable & 10,030 & 10,030 \\ \hline Long-term notes payable & 60,350 & 69,900 \\ \hline Bonds payable & 396,230 & 396,230 \\ \hline Premium on bonds payable & 26,140 & 30,304 \\ \hline Common stock & 238,080 & 220,700 \\ \hline Paid-in capital in excess of par-common stock & 24,960 & 17,620 \\ \hline Retained earnings & 122,100 & 88,820 \\ \hline Total liabilities and stockholders' equity & $909,860 & $872,714 \\ \hline \end{tabular} Bridgeport Company Income Statement and Dividend Information For the Year Ended December 31, 2025 Sales revenue Cost of goods sold Gross margin $1,161,250 Operating expenses \begin{tabular}{|c|c|c|} \hline Selling expenses & $78,710 & \\ \hline Administrative expenses & 157,520 & \\ \hline Depreciation/Amortization expense & 40,200 & \\ \hline Total operating expenses & & 276,430 \\ \hline Income from operations & & 135,400 \\ \hline \multicolumn{3}{|l|}{ Other revenues/expenses } \\ \hline Gain on sale of land & 7,950 & \\ \hline Gain on sale of short-term investment & 4,010 & \\ \hline Dividend revenue & 2,390 & \\ \hline Interest expense & (52,030) & (37,680) \\ \hline Income before taxes & & 97,720 \\ \hline Income tax expense & & 39,260 \\ \hline Net income & & 58,460 \\ \hline Dividends to common stockholders & & (25,180) \\ \hline To retained earnings & & $33,280 \\ \hline \end{tabular} Prepare a statement of cash flows for Bridgeport Company using the direct method accompanied by a reconciliation schedule. Assume the short-term investments are debt securities, classified as available-for-sale. (Show amounts in the investing and financing sections that decrease cash flow with either a signeg-15000 rin parenthesiseg (15000) Reconciliation Schedule Reconciliation of Net Income to $ Adjustments to reconcile net income to $ eTextbook and Media

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And GRC Automation In SAP

Authors: Maxim Chuprunov

1st Edition

3642353010, 9783642353017

More Books

Students also viewed these Accounting questions

Question

What are the attributes of a technical decision?

Answered: 1 week ago

Question

How do the two components of this theory work together?

Answered: 1 week ago