Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The comparative balance sheet of Barry Company for Years 1 and 2 ended December 31 appears in condensed form as follows: Year 2 Year 1

The comparative balance sheet of Barry Company for Years 1 and 2 ended December 31 appears in condensed form as follows: Year 2 Year 1 Cash Total assets Accounts receivable (net) Inventories Investments Equipment Accumulated depreciation-equipment Assets Accounts payable Bonds payable Common stock, $20 par Paid-in capital in excess of par-common stock Relained earnings Total liabilities and stockholders' equity Liabilities and Stockholders' Equity Additional data for the current year are as follows: $72,000 61,000 121,000 515,000 (153,000) $616,000 $59,750 375,000 50,000 131,250 $616,000 $42,500 70,200 105,000 100,000 425,000 (175,000) $567,700 .Net income, $75,800. Depreciation reported on income statement, $38,000. Fully depreciated equipment costing $60,000 was scrapped, no salvage, and equipment was purchased for $150,000. Bonds payable for $75,000 were retired by payment at their face amount. 2,500 shares of common stock were issued at $30 for cash. Cash dividends declared and paid, $40,000. Investments of $100,000 were sold for $125,000. $47,250 75,000 325,000 25,000 95,450 $567,700 Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.
image text in transcribed
The comparative balance sheet of Barry Company for Years 1 and 2 ended December 31 appears in condensed form as follows: Additional data for the current year are as follows: - Net income, 575,800 . - Depreciation reported on income statement; $36,000. - Fully depreciated equipment costing $60,000 was scrapped, no salvage, and equipment was purchased for $150,000. - Bonds payable for $75,000 were retired by payment at their face amount. - 2,500 shares of common stock were issued ot 530 for cash. - Cash dividends deciared and paid, $40,000. - Investments of $100,000 were sold for $125,000. Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, of any negative adjustments

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Belverd E. Needles Jr,, Marian Powers

8th Edition

0618310746, 978-0618310746

More Books

Students also viewed these Accounting questions