Question 5 of 5
Bridgeport Corporation
Comparative Balance Sheets
December 31
2025
2024
Cash
$14,500
$18,500
Accounts receivable
25,100
22,000
Inventories
20,400
15,900
Equipment
65,700
77,900
Accumulated depreciation—equipment
(14,400)
(10,400)
Total
$113,300
$123,300
Accounts payable
$14,900
$11,900
Bonds payable
14,000
20,000
Common stock
54,000
47,500
Retained earnings
30,400
28,900
Total
$113,300
$123,300
Additional information:
1. Net income was $18,400. Dividends declared and paid were $14,900.
2. Equipment which cost $11,800 and had accumulated depreciation of $1,400 was sold for $3,600.
3. No noncash investing and financing activities occurred during 2025.
4. Bonds were retired at their carrying value.
(a)
Prepare a statement of cash flows for 2025 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 CORPORATION
Statement of Cash Flows - Indirect Method