Bridgeport Inc., a greeting card company, had the following statements prepared as of December 31, 2020. BRIDGEPORT INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 12/31/20 12/31/19 Cash $6,100 $7,100 Accounts receivable 61,500 51,000 Short-term debt investments (available-for-sale) 34,800 17,900 Inventory 39,800 59,900 Prepaid rent 5,000 4,000 Equipment 155,200 129,900 Accumulated depreciation—equipment (35,200 ) (24,800 ) Copyrights 45,800 49,800 Total assets $313,000 $294,800 Accounts payable $45,800 $39,800 Income taxes payable 4,100 6,000 Salaries and wages payable 7,900 3,900 Short-term loans payable 8,000 9,900 Long-term loans payable 60,100 68,900 Common stock, $10 par 100,000 100,000 Contributed capital, common stock 30,000 30,000 Retained earnings 57,100 36,300 Total liabilities & stockholders’ equity $313,000 $294,800 BRIDGEPORT INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 Sales revenue $338,200 Cost of goods sold 174,500 Gross profit 163,700 Operating expenses 120,800 Operating income 42,900 Interest expense $11,400 Gain on sale of equipment 2,000 9,400 Income before tax 33,500 Income tax expense 6,700 Net income $26,800 Additional information: 1. Dividends in the amount of $6,000 were declared and paid during 2020. 2. Depreciation expense and amortization expense are included in operating expenses. 3. No unrealized gains or losses have occurred on the investments during the year. 4. Equipment that had a cost of $20,200 and was 70% depreciated was sold during 2020. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Bridgeport Inc., a greeting card company, had the following statements prepared as of December 31, 2020. BRIDGEPORT INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 12/31/20 12/31/19 Cash $6,100 $7,100 Accounts receivable 61,500 51,000 Short-term debt investments (available-for-sale) 34,800 17,900 Inventory 39,800 59,900 Prepaid rent 5,000 4,000 Equipment 155,200 129,900 Accumulated depreciation—equipment (35,200 ) (24,800 ) Copyrights 45,800 49,800 Total assets $313,000 $294,800 Accounts payable $45,800 $39,800 Income taxes payable 4,100 6,000 Salaries and wages payable 7,900 3,900 Short-term loans payable 8,000 9,900 Long-term loans payable 60,100 68,900 Common stock, $10 par 100,000 100,000 Contributed capital, common stock 30,000 30,000 Retained earnings 57,100 36,300 Total liabilities & stockholders’ equity $313,000 $294,800 BRIDGEPORT INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 Sales revenue $338,200 Cost of goods sold 174,500 Gross profit 163,700 Operating expenses 120,800 Operating income 42,900 Interest expense $11,400 Gain on sale of equipment 2,000 9,400 Income before tax 33,500 Income tax expense 6,700 Net income $26,800 Additional information: 1. Dividends in the amount of $6,000 were declared and paid during 2020. 2. Depreciation expense and amortization expense are included in operating expenses. 3. No unrealized gains or losses have occurred on the investments during the year. 4. Equipment that had a cost of $20,200 and was 70% depreciated was sold during 2020. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Bridgeport Inc., a greeting card company, had the following statements prepared as of December 31, 2020.
BRIDGEPORT INC.
COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 |
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12/31/20
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12/31/19
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Cash
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$6,100
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$7,100
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61,500
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51,000
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Short-term debt investments (available-for-sale)
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34,800
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17,900
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Inventory
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39,800
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59,900
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Prepaid rent
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5,000
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4,000
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Equipment
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155,200
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129,900
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(35,200
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)
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(24,800
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)
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Copyrights
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45,800
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49,800
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Total assets
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$313,000
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$294,800
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Accounts payable
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$45,800
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$39,800
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Income taxes payable
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4,100
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6,000
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Salaries and wages payable
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7,900
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3,900
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Short-term loans payable
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8,000
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9,900
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Long-term loans payable
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60,100
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68,900
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Common stock, $10 par
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100,000
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100,000
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Contributed capital, common stock
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30,000
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30,000
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57,100
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36,300
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Total liabilities &
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$313,000
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$294,800
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BRIDGEPORT INC.
INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 |
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---|---|---|---|---|
Sales revenue
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$338,200
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Cost of goods sold
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174,500
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Gross profit
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163,700
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Operating expenses
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120,800
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Operating income
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42,900
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Interest expense
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$11,400
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Gain on sale of equipment
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2,000
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9,400
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Income before tax
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33,500
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Income tax expense
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6,700
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Net income
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$26,800
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Additional information:
1. | Dividends in the amount of $6,000 were declared and paid during 2020. | |
2. | Depreciation expense and amortization expense are included in operating expenses. | |
3. | No unrealized gains or losses have occurred on the investments during the year. | |
4. | Equipment that had a cost of $20,200 and was 70% |
Prepare a statement of
BRIDGEPORT INC.
Statement of Cash Flows choose the accounting period |
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select an opening name for section one
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select an item
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$enter a dollar amount
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Adjustments to reconcile net income to
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select a subsection name
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select an item
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$enter a dollar amount
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select an item
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enter a dollar amount
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select an item
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enter a dollar amount
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select an item
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enter a dollar amount
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select an item
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enter a dollar amount
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select an item
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enter a dollar amount
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select an item
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enter a dollar amount
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select an item
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enter a dollar amount
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select an item
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enter a dollar amount
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enter a subtotal of the adjustments
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select a closing name for section one
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enter a total amount for section one
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select an opening name for section two
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select an item
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enter a dollar amount
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select an item
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enter a dollar amount
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select an item
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enter a dollar amount
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select a closing name for section two
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enter a total amount for section two
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select an opening name for section three
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select an item
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enter a dollar amount
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select an item
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enter a dollar amount
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select an item
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enter a dollar amount
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select a closing name for section three
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enter a total amount for section three
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select an item
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enter a total amount for three sections
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select an item
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enter a dollar amount
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select a closing name for this statement
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$enter a total of the two previous amounts
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