Question
Bridgeport Corp.s statement of financial position at the end of 2019 included the following items: Current assets $1,255,000 Current liabilities $1,113,100 Land 31,000 Bonds payable
Bridgeport Corp.s statement of financial position at the end of 2019 included the following items:
Current assets | $1,255,000 | Current liabilities | $1,113,100 | |||||
---|---|---|---|---|---|---|---|---|
Land | 31,000 | Bonds payable | 1,301,000 | |||||
Buildings | 1,260,000 | Common shares | 184,000 | |||||
Equipment | 330,000 | Retained earnings | 175,000 | |||||
Accumulated depreciationbuildings | (133,000 | ) | ||||||
Accumulated depreciationequipment | (11,100 | ) | ||||||
Intangible assetspatents | 41,200 | |||||||
Total | $2,773,100 | Total | $2,773,100 |
The following information is available for the 2020 fiscal year:
1. | Net income was $405,000. | |
2. | Equipment (cost of $22,000 and accumulated depreciation of $8,150) was sold for $11,700. | |
3. | Depreciation expense was $4,110 on the building and $9,100 on equipment. | |
4. | Amortization expense on a patent was $3,030. | |
5. | Current assets other than cash increased by $46,000. Current liabilities increased by $30,000. | |
6. | An addition to a building was completed at a cost of $32,200. | |
7. | An FV-OCI investment in shares was purchased for $21,100 on the last day of the year. This was the first such investment made by Bridgeport in its history. | |
8. | Bonds payable of $75,700 were issued at par. | |
9. | Cash dividends of $184,000 were declared and paid. Dividends paid are treated as financing activities. |
My Question is that the solution has stated the Current Assets are equal to $1,558,490. I can't seem to figure out how they got that. If you could show your work and explain the process and steps: it would be appreciated!
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