Presented below is a condensed version of the comparative balance sheets for bridgeport corporation for the last two years at december 31.20172016cash$ 230,100$ 101,400accounts receivable234,000240,500investments 67,60096,200equipment387,400312,000 accumulated depreciation-equipment(137,800)(115 ,700)current liabilities174,200196,300common stock208,000208,000retained earnings399,100230,100additional information: investments were sold at a loss of $13,000; no equipment was sold; cash dividends paid were $39,000; and net income was $208,000.required: prepare a statement of cash flows for the year ended december 31, 2017.

Cash flow generated 128,700

beginning cash flow   101,400

ending cash flow        230,100

Explanation:

Net income                208,000

loss at disposal              13,000

depreciation                 22,100

adjusted net income   243,100

change in working capital:

A/R decrease                          6,500

current liabilities decrease  (22,100)

   net                                     (15,600)

from operating activities:     227,500

Investing activities

sale of investment: 15,600

purchase of equipment (75,400)

cash used in investing   (59,800)

Financing activities:

dividends paid (39,000)

Cash flow generated 128,700

beginning cash flow   101,400

ending cash flow        230,100

From the net income, we adjust for the non monetary concepts. In this case:

depreciation and the loss on disposal.

Then, we adjust for the change in working capital. Giving us the cash generated from  operations.

Then, we solve for the investing activities which are:

purchase of equipment 387,400 ending balance - 312,000 beginning balance

the proceeds from the sale of investment

(96,200 - 67,600) --> book value of what we sold

  13,000 loss

proceeds of 15,600

Last, dividends paid into financing activities.

Then we add up everything and get the cash flow for the entire year.

answer; i believe the correct answer is (a) purchase of treasury stock;