9:36 AM * 22% Exercise 5-16 A comparative balance sheet for Bridgeport Corporati

Question

9:36 AM * 22% Exercise 5-16 A comparative balance sheet for Bridgeport Corporation is presented below. 2017 2016 Assets Cash Accounts receivable Inventory Land Equipment Accumulated Depreciation-Equipment $ 72,730 22,000 84,48068,750 182,480 191,750 73,480 112,750 262,480 202,750 71,480) (44,750) Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock ($1 par) Retained earnings $604,170 $553,250 36,480 $49,750 150,000 200,000 214,000 164,000 203,690 139,500 $604,170 $553,250 Total Additional information: 1. Net income for 2017 was $129,960. No gains or losses were recorded in 2017 2. Cash dividends of $65,770 were declared and paid. 3. Bonds payable amounting to $50,000 were retired through issuance of common stock. Prepare a statement of cash flows for 2017 for Bridgeport Corporation. (Show amounts either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) that decrease cash flow w BRIDGEPORT CORPORATION Statement of Cash Flows Adjustments to reconcile net income to

Explanation / Answer

cash flow statement

Indirect method

net income

129960

add depreciation

71480-44750

26730

increase in accounts receivables

68750-84480

-15730

decrease in inventory

191750-182480

9270

decrease in accounts payable

(36480-49750)

-13270

cash flow from operating activities

136960

cash flow from investing activities

cash from sale of land

39270

purchase of equipment

-59730

cash flow from investing activities

-20460

cash flow from financing activities

-65770

cash dividend

-65770

cash from operation during the year

50730

add beginning cash balance

22000

year end cash balance

72730

cash flow statement

Indirect method

net income

129960

add depreciation

71480-44750

26730

increase in accounts receivables

68750-84480

-15730

decrease in inventory

191750-182480

9270

decrease in accounts payable

(36480-49750)

-13270

cash flow from operating activities

136960

cash flow from investing activities

cash from sale of land

39270

purchase of equipment

-59730

cash flow from investing activities

-20460

cash flow from financing activities

-65770

cash dividend

-65770

cash from operation during the year

50730

add beginning cash balance

22000

year end cash balance

72730

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