1. The comparative balance sheets of Barry Company, for Years 1 and 2 ended December 31, appear below in condensed form. Year 2Year 1Cash$ 72,000 $42,500 Accounts Receivable (net)61,000 70,200 Inventories121,000 105,000 Investments-100,000 Equipment515,000 425,000 Accumulated Depreciation—Equipment(153,000) (175,000) $616,000 $567,700 Accounts Payable$ 59,750 $47,250 Bonds Payable-75,000 Common Stock, $20 par375,000 325,000 Premium on Common Stock50,000 25,000 Retained Earnings131,250 95,450 $616,000 $567,700 Additional data for the current year are as follows:(a) Net income, $75,800.(b) Depreciation reported on income statement, $38,000.(c) Fully depreciated equipment costing $60,000 was scrapped, no salvage, and equipment was purchased for $150,000.(d) Bonds payable for $75,000 were retired by payment at their face amount.(e) 2,500 shares of common stock were issued at $30 for cash.(f) Cash dividends declared and paid, $40,000.(g) Investments of $100,000 were sold for $125,000.Prepare a statement of cash flows using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.Barry CompanyStatement of Cash FlowsFor the Year Ended December 31, Year 2 Barry CompanyStatement of Cash FlowsFor the Year Ended December 31, Year 2Cash flows from operating activities:Adjustments to reconcile net income to net cash flow from operating activities:Changes in current operating assets and liabilities:Net cash flow from operating activitiesCash flows from investing activities:Net cash flow used for investing activities Net cash flow from operating activitiesCash flows from investing activities:Net cash flow used for investing activitiesCash flows from financing activities:Net cash flow used for financing activitiesCash at the beginning of the yearCash at the end of the year

The Statement of Cash Flows (also known as the cash flow statement) is a financial statement that…

Answered: Year 2 Year 1 Cash $ 72,000 $42,500…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

100%

1. The comparative balance sheets of Barry Company, for Years 1 and 2 ended December 31, appear below in condensed form.

	Year 2	Year 1
Cash	$ 72,000	$42,500
Accounts Receivable (net)	61,000	70,200
Inventories	121,000	105,000
Investments	-	100,000
Equipment	515,000	425,000
Accumulated Depreciation—Equipment	(153,000)	(175,000)
	$616,000	$567,700

Accounts Payable	$ 59,750	$47,250
Bonds Payable	-	75,000
Common Stock, $20 par	375,000	325,000
Premium on Common Stock	50,000	25,000
Retained Earnings	131,250	95,450
	$616,000	$567,700

Additional data for the current year are as follows:

(a)		Net income, $75,800.
(b)		Depreciation reported on income statement, $38,000.
(c)		Fully depreciated equipment costing $60,000 was scrapped, no salvage, and equipment was purchased for $150,000.
(d)		Bonds payable for $75,000 were retired by payment at their face amount.
(e)		2,500 shares of common stock were issued at $30 for cash.
(f)		Cash dividends declared and paid, $40,000.
(g)		Investments of $100,000 were sold for $125,000.

Prepare a statement of cash flows using the indirect method. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.

Barry Company
Statement of Cash Flows
For the Year Ended December 31, Year 2