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: 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 103,800 101,100 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 $ 394,700BRIDGEPORT INC. Statement of Comprehensive Income For the Year Ended June 30, 2020 Net sales $ 330,000 Cost of goods sold 169,000 Gross prot 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 lossOCI 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 25 8,000 of equipment in exchange for long-term notes payable. Prepare the statement of cash ows for Bridgeport for the year ended June 30, 2020. using the indirect method along with any necessary note disclosure. (Show amounts that decrease cash ow with eithera - Sign es. 215.000 or in parenthesis 83(150001.) BRIDGEPORT INC. Statement of Cash Flows V V $ Adjustments to reconcile net income to net cash provided by operating activities: V $ V V V V V V V V V V V V V V V V V $ During the year, equipment with a cost of $ was purchased in exchange for a note payable. Cash paid during the year for interest $ Cash paid during the year for taxes $ Prepare the operating activities section of the statement of cash flows for Bridgeport using the direct method. (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 V V V V $ V V V V eTextbook and MediaDecrease in Prepaid Expenses Purchase of Equipment increase in Prepaid Expenses Depreciation Expense Decrease in Accounts Payable Increase in Income Taxes Payable Payment of Cash Dividends Issuance of Common Shares Repayment of Notes Payable Increase in Accounts Receivable Gain on Sale of Equipment Loss on Sale of Equipment Decrease in Accounts Receivable Increase in Inventory Decrease in inventory Sale of Equipment Decrease in income Taxes Payable Net income,l iLoss] increase in Accounts Payaoie Net Cash Provided by Investing Activities Cash Flows from Operating Activities Cash Flows from Investing Activities Net Decrease in Cash Cash Flows from Financing Activities Cash at Beginning of Year Cash at End of Year Net Cash used by Financing Activities Net Cash used by Investing Activities Net Cash used by Operating Activities Net increase in Cash Net Cash Provided by Financing Activities Net Cash Provided by Operating Activities Net Cash used by Investing Activities Cash at End of Year Cash Flows front Operating Activities Net Decrease in Cash Net Cash used by Financing Activities Net Cash Provided by Operating Activities Net Cash used by Operating Activities Net Cash Provided by Investing Activities Cash Flows front Investing Activities Net Cash Provided by Financing Activities Cash Flows from Financing Activities Cash at Beginning of Year Net Increase in Cash