Question

Bridgeport Corp.’s statement of financial position at the end of 2019 included the following items:

Current assets		$1,255,000			Current liabilities		$1,113,100
Land		31,000			Bonds payable		1,301,000
Buildings		1,260,000			Common shares		184,000
Equipment		330,000			Retained earnings		175,000
Accumulated depreciation—buildings		(133,000	)
Accumulated depreciation—equipment		(11,100	)
Intangible assets—patents		41,200
Total		$2,773,100			Total		$2,773,100

The following information is available for the 2020 fiscal year:

1.		Net income was $405,000.
2.		Equipment (cost of $22,000 and accumulated depreciation of $8,150) was sold for $11,700.
3.		Depreciation expense was $4,110 on the building and $9,100 on equipment.
4.		Amortization expense on a patent was $3,030.
5.		Current assets other than cash increased by $46,000. Current liabilities increased by $30,000.
6.		An addition to a building was completed at a cost of $32,200.
7.		An FV-OCI investment in shares was purchased for $21,100 on the last day of the year. This was the first such investment made by Bridgeport in its history.
8.		Bonds payable of $75,700 were issued at par.
9.		Cash dividends of $184,000 were declared and paid. Dividends paid are treated as financing activities.

My Question is that the solution has stated the Current Assets are equal to $1,558,490. I can't seem to figure out how they got that. If you could show your work and explain the process and steps: it would be appreciated!

Answer 1

	Amount in $
Opening Current Assets	1,255,000
Add: Net Income	405,000
Add: Depreciation -Building	4,110
Add: Depreciation -Equipment	9,100
Add: Amortization of patent	3,030
Add: Loss on sale of equipment	2,150	(22,000 - 8,150 - 11,700 )
Add: Increase in current liabilities	30,000
Add: Proceeds of sale of equipment	11,700
Add: Issuance of bond payable	75,700
Less: Addition to building	32,200
Less: Investment in shares	21,100
Less: Cash Dividends	184,000
Current assets at end of 2020	1,558,490