Problem 23-02 The comparative balance sheets for Bridgeport Corporation show the following information. Cash Accounts receivable Inventory Available-for-sale debt investments Buildings Equipment Patents December 31 2020 2019 $33,400 $12,900 12,300 10,100 12,000 9,000 -0- 3,000 -0- 29,600 45,200 19,900 4,900 6,400 $107,800 $90,900 Allowance for doubtful accounts Accumulated depreciation-equipment Accumulated depreciation-building Accounts payable Dividends payable Notes payable, short-term (nontrade) Long-term notes payable Common stock Retained earnings $3,000 2,000 -0- 4,900 -0- 2,900 31,000 43,000 21,000 $107,800 $4,600 4,500 6,100 3,000 4,900 4,100 25,000 33,000 5,700 $90,900 Additional data related to 2020 are as follows. 1. Equipment that had cost $11,000 and was 40% depreciated at time of disposal was sold for $2,500. 2. $10,000 of the long-term note payable was paid by issuing common stock. 3. Cash dividends paid were $4,900. 4. On January 1, 2020, the building was completely destroyed by a flood. Insurance proceeds on the building were $30,100 (net of $1,900 taxes). 5. Debt investments (available-for-sale) were sold at $1,600 above their cost. The company has made similar sales and investments in the past. 6. Cash was paid for the acquisition of equipment. 7. A long-term note for $16,000 was issued for the acquisition of equipment. 8. Interest of $1,900 and income taxes of $6,500 were paid in cash. BRIDGEPORT CORPORATION Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities $ Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense $ $ Patent Amortization Loss on Sale of Equipment Gain from Flood Damage Gain on Sale of Investments Increase in Accounts Receivable (Net) Increase in Inventory Increase in Accounts Payable Net Cash Provided by Operating Activities Cash Flows from Investing Activities Sale of Equipment Supplemental disclosures of cash flow information: Supplemental disclosures of cash flow information: $ $