Presented next are the balance sheet accounts of Bergen Corporation as of December 31, 20X1 and 20X0.

Additional Information:

• On January 2, 20X1, Bergen sold all of its marketable investment securities for $95,000 cash.

• On March 10, 20X1, Bergen paid a cash dividend of $50,000 on its common stock. No other dividends were paid or declared during 20X1.

• On April 15, 20X1, Bergen issued 2,000 shares of its common stock for land having a fair value of $100,000.

• On May 25, 20X1, Bergen borrowed $450,000 from an insurance company. The underlying promissory note bears interest at 15% and is payable in three equal annual installments of $150,000. The first payment is due on May 25, 20X2.

• On June 15, 20X1, Bergen purchased equipment for $392,000 cash.

• On July 1, 20X1, Bergen sold equipment costing $52,000, with a book value of $28,000, for $33,000 cash.

• On December 31, 20X1, Bergen leased equipment from Tilden Company for a 10-year period. Equal payments under the lease are $25,000 due on December 31 each year.

The first payment was made on December 31, 20X1. The present value at December 31, 20X1, of the 10 lease payments is $158,000. Bergen appropriately recorded the lease as a finance lease. The $25,000 lease payment due on December 31, 20X2, will consist of $9,000 principal and $16,000 interest.

• Bergen’s net income for 20X1 is $253,000.
• Bergen owns a 10% interest in the voting common stock of Mason, Inc. Mason reported net income of $120,000 for the year ended December 31, 20X1, and paid a common stock dividend of $55,000 during 20X1.

Required:

Prepare a cash flow statement for Bergen using the indirect method for 20X1.

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20X1 20X0 Increase (Decreas Assets Current assets: Cash $ 541,000 $ 308,000 $ 233,000 Accounts receivable, net Inventories 585,000 895,000 2,021,000 495,000 90,000 780,000 115,000 1,583,000 250,000 720,000 Total current assets 438,000 Land 350,000 1,060,000 100,000 340,000 Plant and equipment Accumulated depreciation Leased equipment under capital lease Marketable investment securities, at cost Investment in Mason, Inc., at cost (295,000) 158,000 (170,000) (125,000) 158,000 -0- -0- 75,000 180,000 (75,000) -0- 180,000 Total assets $3.474,000 $2,638,000 $ 836,000 Liabilities and Stockholders' Equity Current liabilities: $ 159,000 $ -0- Current portion of long-term debt Accounts payable and accrued expenses $ 159,000 (63,000) 96,000 760,000 823,000 Total current liabilities 919,000 823,000 Note payable, long-term Liability under capital lease Bonds payable Unamortized bond premium Deferred income taxes 300,000 124,000 500,000 -0- 300,000 -0- 124,000 500,000 -0- 16,000 60,000 640,000 (2,000) 15,000 18,000 45,000 Common stock, par-value $20 Additional paid-in capital Retained earnings Total liabilities and stockholders' equity 600,000 40,000 304,000 244,000 60,000 611,000 408,000 203,000 $3.474,000 $2,638,000 $ 836,000