Question
Bridgeport Inc., a greeting card company, had the following statements prepared as of December 31, 2025. Bridgeport Inc. Comparative Balance Sheet As of December
Bridgeport Inc., a greeting card company, had the following statements prepared as of December 31, 2025. Bridgeport Inc. Comparative Balance Sheet As of December 31, 2025 and 2024 12/31/25 12/31/24 Cash $5,900 $7,000 Accounts receivable 62,500 51,200 Short-term debt investments (available-for-sale) 35,300 17,900 Inventory 39,800 60,100 Prepaid rent 5,100 3,900 Equipment 155,200 130,400 Accumulated depreciation-equipment (34,700) (25,200) Copyrights 45,500 50,400 Total assets $314,600 $295,700 Accounts payable $46,100 $39,900 Income taxes payable 4,100 6,000 Salaries and wages payable 8,000 4,000 Short-term loans payable 8,000 10,100 Long-term loans payable 60,400 69,100 Common stock, $10 par 100,000 100,000 Paid-in capital, common stock 30,000 30,000 Retained earnings 58,000 36,600 Total liabilities and stockholders' equity $314,600 $295,700 Bridgeport Inc. Income Statement For the Year Ending December 31, 2025 Sales revenue Cost of goods sold Gross profit $340,650 175,900 164,750 Operating expenses 121,000 Operating income 43.750 Interest expense $11,500 Gain on sale of equipment 2,000 9,500 Income before tax 34,250 Income tax expense 6,850 Net income $27,400 Additional information: 1. Dividends in the amount of $6,000 were declared and paid during 2025. 2. Depreciation expense and amortization expense are included in operating expenses. 3. No unrealized gains or losses have occurred on the investments during the year. 4. Equipment that had a cost of $20,200 and was 70% depreciated was sold during 2025. Prepare a statement of cash flows using the direct method. (Do not prepare a reconciliation schedule.) (Show amounts in the investing and financing sections that decrease cash flow with either a-sign eg.-15,000 or in parenthesis e.g. (15,000).) BRIDGEPORT INC. STATEMENT OF CASH FLOWS 4 eTextbook and Media
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