Problem 12-08A

Presented below are the financial statements of Bridgeport Company.

Bridgeport Company Comparative Balance Sheets December 31
Assets		2022			2021
Cash		$ 21,000			$ 12,000
Accounts receivable		12,000			8,400
Inventory		16,800			12,000
Property, plant, and equipment		36,000			46,800
Accumulated depreciation		(19,200	)		(14,400	)
Total		$66,600			$64,800
Liabilities and Stockholders Equity
Accounts payable		$ 11,400			$ 9,000
Income taxes payable		4,200			4,800
Bonds payable		10,200			19,800
Common stock		10,800			8,400
Retained earnings		30,000			22,800
Total		$66,600			$64,800

Bridgeport Company Income Statement For the Year Ended December 31, 2022
Sales revenue				$145,200
Cost of goods sold				105,000
Gross profit				40,200
Selling expenses		$10,800
Administrative expenses		3,600		14,400
Income from operations				25,800
Interest expense				1,800
Income before income taxes				24,000
Income tax expense				4,800
Net income				$ 19,200

Additional data:

1.		Depreciation expense was $10,500.
2.		Dividends declared and paid were $12,000.
3.		During the year equipment was sold for $5,100 cash. This equipment cost $10,800 originally and had accumulated depreciation of $5,700 at the time of sale.

Further analysis reveals the following.

1.		Accounts payable pertain to merchandise suppliers.
2.		All operating expenses except for depreciation were paid in cash.
3.		All depreciation expense is in the selling expense category.
4.		All sales and purchases are on account.

Prepare a statement of cash flows for Bridgeport Company using the direct method.