Question
Condensed financial data of Bridgeport Corp. follow. Bridgeport Corp. Comparative Balance Sheets December 31 Assets 2017 2016 Cash $ 151,096 $ 90,508 Accounts receivable 164,186
Condensed financial data of Bridgeport Corp. follow.
Bridgeport Corp. Comparative Balance Sheets December 31 | ||||||
Assets | 2017 | 2016 | ||||
Cash | $ 151,096 | $ 90,508 | ||||
Accounts receivable | 164,186 | 71,060 | ||||
Inventory | 210,375 | 192,330 | ||||
Prepaid expenses | 53,108 | 48,620 | ||||
Long-term investments | 258,060 | 203,830 | ||||
Plant assets | 532,950 | 453,475 | ||||
Accumulated depreciation | (93,500 | ) | (97,240 | ) | ||
Total | $1,276,275 | $962,583 | ||||
Liabilities and Stockholders Equity | ||||||
Accounts payable | $ 190,740 | $ 125,851 | ||||
Accrued expenses payable | 30,855 | 39,270 | ||||
Bonds payable | 205,700 | 273,020 | ||||
Common stock | 411,400 | 327,250 | ||||
Retained earnings | 437,580 | 197,192 | ||||
Total | $1,276,275 | $962,583 |
Bridgeport Corp. Income Statement Data For the Year Ended December 31, 2017 | ||||
Sales revenue | $726,420 | |||
Less: | ||||
Cost of goods sold | $253,310 | |||
Operating expenses, excluding depreciation | 23,207 | |||
Depreciation expense | 86,955 | |||
Income tax expense | 51,014 | |||
Interest expense | 8,845 | |||
Loss on disposal of plant assets | 14,025 | 437,356 | ||
Net income | $ 289,064 |
Additional information:
1. | New plant assets costing $187,000 were purchased for cash during the year. | |
2. | Old plant assets having an original cost of $107,525 and accumulated depreciation of $90,695 were sold for $2,805 cash. | |
3. | Bonds payable matured and were paid off at face value for cash. | |
4. | A cash dividend of $48,676 was declared and paid during the year. |
Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started