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

1		Year 2	Year 1
2	Cash	$72,000.00	$42,500.00
3	Accounts receivable (net)	61,000.00	70,200.00
4	Inventories	121,000.00	105,000.00
5	Investments		100,000.00
6	Equipment	515,000.00	425,000.00
7	Accumulated depreciation-equipment	(153,000.00)	(175,000.00)
8		$616,000.00	$567,700.00
9	Accounts payable	$59,750.00	$47,250.00
10	Bonds payable		75,000.00
11	Common stock, $20 par	375,000.00	325,000.00
12	Premium on common stock	50,000.00	25,000.00
13	Retained earnings	131,250.00	95,450.00
14		$616,000.00	$567,700.00

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.

Required:

Prepare a statement of cash flows using the indirect method. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. In the operating activities section, use the minus sign to indicate cash outflows, decreases in cash and a net cash out flow, if required. In the investing and financing activities section, use a minus sign only to indicate a NET cash outflow for the section. Less or Plus will automatically appear if it is required.

Statement of Cash Flows

Prepare a statement of cash flows using the indirect method. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. In the operating activities section, use the minus sign to indicate cash outflows, decreases in cash and a net cash out flow, if required. In the investing and financing activities section, use a minus sign only to indicate a NET cash outflow for the section. Less or Plus will automatically appear if it is required.

Barry Company