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).)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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. Statement of Cash Flows choose the accounting period
select an opening name for section one
select an item		$enter a dollar amount
Adjustments to reconcile net income to
select a subsection name
select an item	$enter a dollar amount
select an item	enter a dollar amount
select an item	enter a dollar amount
select an item	enter a dollar amount
select an item	enter a dollar amount
select an item	enter a dollar amount
select an item	enter a dollar amount
select an item	enter a dollar amount
select an item	enter a dollar amount
		enter a subtotal of the adjustments
select a closing name for section one		enter a total amount for section one

select an opening name for section two
select an item	enter a dollar amount
select an item	enter a dollar amount
select an item	enter a dollar amount
select a closing name for section two		enter a total amount for section two

select an opening name for section three
select an item	enter a dollar amount
select an item	enter a dollar amount
select an item	enter a dollar amount
select a closing name for section three		enter a total amount for section three

select an item		enter a total amount for three sections
select an item		enter a dollar amount
select a closing name for this statement		$enter a total of the two previous amounts

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