The comparative balance sheets for Bridgeport Corporation show the following information: December 31 2020 2019 Cash $55,600 $19,000 Accounts receivable 55,600 51,500 Inventory 80,800 83,000 Buildings -0- 181,000 Equipment Investments 196,000 121,000 -0- 41,800 Patents Total assets 25,000 29,500 $413,000 $526,800 Allowance for doubtful accounts $5,000 $4,500 Accumulated depreciation-building -0- 46,600 Accumulated depreciation-equipment 45,200 19,900 Accounts payable 76,700 75,300 Dividends payable 6,500 13,000 Notes payable, short-term 9,900 5,900 Long-term notes payable 49,600 258,000 Common stock 68,500 49,200 Retained earnings 151,600 54,400 Total liabilities and stockholders' equity $413,000 $526,800 Additional data related to 2020 are as follows. 1. Equipment that had cost $20,000 and was 60% depreciated at time of disposal was sold for $2,000. 2. $19,300 of the long-term note payable was paid by issuing common stock. 3. Cash dividends paid were $13,000. 4. 5. On January 1, 2020, the building was completely destroyed by a hurricane. Insurance proceeds on the building were $268,300. Investments (available-for-sale) were sold at $2,800 below 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 $20,000 was issued for the acquisition of equipment. 8. Interest of $1,000 and income taxes of $23,800 were paid in cash. Prepare a statement of cash flows using the indirect method. Hurricane damage is unusual in that part of the country. (Show amounts that decrease cash flow with either a sign e.g. -15,000 or in parenthesis e.g. (15,000).) Cash Flows from Operating Activities BRIDGEPORT CORPORATION Statement of Cash Flows For the Year Ended December 31, 2020 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 Hurricane Damage Gain on Sale of Equipment 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 Investments Proceeds from Hurricane Damage to Building $ Sale of Equipment Purchase of Equipment Net Cash Provided by Investing Activities Cash Flows from Financing Activities Payment of Long-term Notes Payable Payment of Dividends Purchase of Equipment Net Cash Provided by Financing Activities Cash Flows from Financing Activities $ MID Supplemental disclosures of cash flow information: +A $ +A +A $