Bridgewater Group, Inc. Consolidated Balance Sheets At December 31, (in thousands) 2019 2018 ASSETS Cash and cash equivalents Accounts receivables, net Inventories Prepaid expenses Total current assets Equipment Less: Accumulated depreciation Total assets 263,397 $ 78,999 60,158 12,009 414,563 159,500 (35,439) 538,624 $ 231,805 62,563 43,129 15,842 353,339 165,000 (36,689) 481,650 $ LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Accounts payable Accrued liabilities Total current liabilities Long-term debt Total liabilities 43,500 37,750 81,250 157,000 238,250 35,300 47,750 83,050 173,000 256,050 Stockholders' equity Contributed capital 75,000 50,000 Stockholders' equity Contributed capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 75,000 225,374 300,374 538,624 50,000 175,600 225,600 481,650 $ Bridgewater Group, Inc. Consolidated Statement of Income For the years ended December 31, (in thousands) 2019 200,000 74,040 125,960 Net sales Cost of sales Gross profit Operating expenses: Selling, general & administrative expenses Depreciation expense Loss on Disposal of Asset Total operating expenses Operating income Interest expense Income before income taxes Income tax expense Net income 33,211 13,750 500 47,461 78,499 6,000 72,499 15,225 57,274 Requirement: Using the financial statements and the information provided to you below, prepare the Statement of Cash Flows for Bridgewater Group, Inc. using them and direct method for the year ended December 31, 2019. Additional Information: - The company declared and paid dividends of $7,500 in 2019 - The company purchased equipment for $25,000 in cash - The company sold equipment for proceeds of $15,000 cash in 2019. The equipment had an original cost basis of $30,500 and accumulated depreciaiton on the date of sale of $15,000. - The company paid $22,000 towards long-term debt in 2019. Of this amount, $6,000 was interest paid, the remainder was principal. Hint: Proper formatting counts! DIRECT METHOD!!! Cash flows from operating activities: Cash collected from customers Cash payments to suppliers Cash payments for other expenses Cash payments for interest Cash payments for income tax expense Net cash provided by operating activities Cash flows from investing activities: Purchases of property, plant, and equipment Proceeds from disposal of property, plant, and equipment Purchase of short-term investments Proceeds from sale of short-term investments Net cash used by investing activities Cash flows from financing activities: Repayment of principal on long-term debt Proceeds from issuance of long-term debt Repurchase of stock Proceeds from issuance of stock Payment of cash dividends Net cash provided by financing activities Net Income (Decrease) in Cash and Equivalents Cash and Equivalents - Beginning of Year Cash and Equivalents - End of Year Check
