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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

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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 $ 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 $ 59,750 $47,250 Accounts Payable Bonds Payable Common Stock, $20 par Premium on Common Stock Retained Earnings 375,000 50,000 131,250 $616,000 75,000 325,000 25,000 95,450 $567,700 Additional data for the current year are as follows: (0) Net income, 575,800. Depreciation reported on income statement, $38,000, Fully depreciated equipment costing $60,000 was scrapped, no salvage, and equipment was (C 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. Cash dividends declared and paid, $40,000. (9) Investments of $100,000 were sold for $125,000. Barry Company Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities: Net Income 75,800 Adjustments to reconcile net income to net cash flow from operating activities: Depreciation 38,000 Gain on sale of Investments 25,000 Changes in current operating assets and liabilities: Decrease in accounts recelvable 9,200 Net cash flow from operating activities Cash flows from investing activities: I Net cash flow used for investing activities Cash flows from financing activities: Changes in current operating assets and liabilities: Decrease in accounts receivable 9,200 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 Increase in cash 29,500 42,500 Cash at the beginning of the year 72,000 Cash at the end of the year

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