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The comparative balance sheets of Barry Company, for Years 1 and 2 ended December 31, appear condensed form. Year 2 Year 1 $ 72,000 Cash
The comparative balance sheets of Barry Company, for Years 1 and 2 ended December 31, appear condensed form. Year 2 Year 1 $ 72,000 Cash Accounts Receivable (net) Inventories Investments Equipment Accumulated Depreciation-Equipment 61,000 121,000 $42,500 70,200 105,000 100,000 515,000 (153,000) $616,000 425,000 (175,000) $567,700 $ 59,750 $47,250 75,000 Accounts Payable Bonds Payable Common Stock, $20 par Premium on Common Stock Retained Earnings 325,000 375,000 50,000 131,250 25,000 95,450 $616,000 $567,700 Additional data for the current year are as follows: (a) (b) Net income, $75,800. Depreciation reported on income statement, $38,000. 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. (6) Cash dividends declared and paid, $40,000. (9) Investments of $100,000 were sold for $125,000 4 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 Cash flows from operating activities: Net income 75,800 Adjustments to reconcile net income to net cash flow from operating activities: Depreciation 25,000 38,000 Changes in current operating assets and liabilities: PRICELLOW 2U 38,000 Changes in current operating assets and liabilities: 9,200 -16,000 12,500 94.500 Net cash flow from operating activities Cash flows from investing activities: -75,000 Net cash flow used for investing activities Cash flows from financing activities: Increase in inventories Net income Gain on sale of investments 29.500 Net cash flow used for financing activities Decrease in cash Cash at the beginning of the year Cash at the end of the year 42.500 72,000
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