Exercise 5-17 a-b The comparative statement of financial position of Bridgeport Inc. as at June 30, 2020, and a statement of comprehensive income for the 2020 fiscal year follow: 101,100 BRIDGEPORT INC. Statement of Financial Position June 30, 2020 June 30 Assets 2020 2019 Cash $ 20,000 $ 35,000 Accounts receivable 86,800 71,800 Inventory 103,800 Prepaid expenses 2,700 6,400 FV-OCI investments 47,100 44,400 Equipment 178,000 159,000 Accumulated depreciation equipment (35,600) (23,000) Total $402,800 $394,700 Liabilities and Shareholders' Equity Accounts payable $117,000 $104,000 Income tax payable 1,900 3,000 Dividends payable 5,500 0 Long-term notes payable 82,500 119,000 Common shares 30,200 23,900 Retained earnings 154,100 135,900 Accumulated other comprehensive income 11,600 8,900 Total $402,800 $394,700 BRIDGEPORT INC. Statement of Comprehensive Income For the Year Ended June 30, 2020 Net sales $330,000 Cost of goods sold 169,000 Gross profit 161,000 Operating expenses 119,000 Income from operations 42,000 Interest expense 8,200 Income before income tax 33,800 Income tax 6,300 Net income 27,500 Other comprehensive income Unrealized gain or loss-OCI 2,700 Comprehensive income $ 30,200 Additional information: 1. Bridgeport follows IFRS. Assume that interest is treated as an operating activity for purposes of the statement of cash flows. 2. Operating expenses include $12,600 in depreciation expense. 3. There were no disposals of equipment during the year. 4. Common shares were issued for cash. 5. During the year, Bridgeport acquired $8,000 of equipment in exchange for long-term notes payable. Prepare the statement of cash flows for Bridgeport for the year ended June 30, 2020, using the indirect method along with any necessary note disclosure. (Show amounts that decrease cash flow with either a - sign e.g.-15,000 or in parenthesis e.g. (15,000).) BRIDGEPORT INC. Statement of Cash Flows Adjustments to reconcile net income to net cash provided by operating activities