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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
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 121,000 105,000 100,000 Investments 515,000 425,000 Equipment Accumulated Depreciation Equipment (175,000) (153,000) $616,000 $567,700 Accounts Payable $ 59,750 $47,250 Bonds Payable 75,000 375,000 325,000 Common Stock, $20 par 50,000 25,000 Premium on Common Stock 131,250 95,450 Retained Earnings $616,000 $567,700 (c ) Additional data for the current year are as follows: (a) Net income, $75,800. (b) Depreciation reported on income statement, $38,000. 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. 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. (e) Prepare a statement of cash flows using the indirect method. Use the minus sign to indicate cash out flows, cash payments, dec any negative adjustments. Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: O O O O O QUE Net cash flow from operating activities Cash flows from investing activities: Net cash flow used for investing activities Cash flows from financing activities: Net cash flow used for financing activities Net cash flow used for financing activities Cash at the beginning of the year Cash at the end of the year
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