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Exercise 23-11 Condensed financial data of Bridgeport Company for 2017 and 2016 are presented below. BRIDGEPORT COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017

Exercise 23-11

Condensed financial data of Bridgeport Company for 2017 and 2016 are presented below.

BRIDGEPORT COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016

2017

2016

Cash

$1,840

$1,170

Receivables

1,730

1,310

Inventory

1,580

1,880

Plant assets

1,910

1,700

Accumulated depreciation

(1,210

)

(1,170

)
Long-term investments (held-to-maturity)

1,310

1,420

$7,160

$6,310

Accounts payable

$1,190

$900

Accrued liabilities

210

260

Bonds payable

1,400

1,580

Common stock

1,880

1,720

Retained earnings

2,480

1,850

$7,160

$6,310

BRIDGEPORT COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017

Sales revenue

$7,000

Cost of goods sold

4,710

Gross margin

2,290

Selling and administrative expenses

940

Income from operations

1,350

Other revenues and gains
Gain on sale of investments

80

Income before tax

1,430

Income tax expense

540

Net income 890
Cash dividends

260

Income retained in business

$630

Additional information: During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2017. 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).)

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