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Bridgeport Corporations balance sheet at the end of 2019 included the following items. Current assets (Cash $ 82,000) $ 236,480 Current liabilities $ 151,480 Land
Bridgeport Corporations balance sheet at the end of 2019 included the following items.
Current assets (Cash $ 82,000) | $ 236,480 | Current liabilities | $ 151,480 | ||||
Land | 32,960 | Bonds payable | 101,480 | ||||
Buildings | 121,480 | Common stock | 182,960 | ||||
Equipment | 92,960 | Retained earnings | 46,960 | ||||
Accum. depr.-buildings | ( 31,480 | ) | Total | $ 482,880 | |||
Accum. depr.-equipment | ( 11,000 | ) | |||||
Patents | 41,480 | ||||||
Total | $ 482,880 |
The following information is available for 2020.
1. | Net income was $ 54,810. | |
2. | Equipment (cost $ 21,480 and accumulated depreciation $ 9,480) was sold for $ 11,480. | |
3. | Depreciation expense was $ 5,480 on the building and $ 10,480 on equipment. | |
4. | Patent amortization was $ 2,500. | |
5. | Current assets other than cash increased by $ 29,000. Current liabilities increased by $ 14,480. | |
6. | An addition to the building was completed at a cost of $ 28,480. | |
7. | A long-term investment in stock was purchased for $ 16,000. | |
8. | Bonds payable of $ 52,960 were issued. | |
9. | Cash dividends of $ 30,000 were declared and paid. | |
10. | Treasury stock was purchased at a cost of $ 11,000. |
Prepare a statement of cash flows for 2020. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Cash Flows from Investing Activities Sale of Equipment 11480 Addition to Building -28480 Investment in Stock - 16000 Net Cash Used by Investing Activities -33000 Cash Flows from Financing Activities Issuance of Bonds 52960 Payment of Dividends -30000 Purchase of Treasury Stock - 11000 11960Step by Step Solution
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