FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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1. 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   
   
 
Accounts Payable
$ 59,750   
$47,250   
Bonds Payable
-
75,000   
Common Stock, $20 par
375,000   
325,000   
Premium on Common Stock
50,000   
25,000   
Retained Earnings
131,250   
95,450   
 
$616,000   
$567,700   

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.

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

Barry Company
Statement of Cash Flows
For the Year Ended December 31, Year 2
Cash flows from operating activities:
Adjustments to reconcile net income to net cash flow from operating activities:
Changes in current operating assets and liabilities:
Net cash flow from operating activities
Cash flows from investing activities:
Net cash flow used for investing activities
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Transcribed Image Text:Barry Company Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities: Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities Cash flows from investing activities: Net cash flow used for investing activities
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
Cash at the beginning of the year
Cash at the end of the year
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Transcribed Image Text: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 Cash at the beginning of the year Cash at the end of the year
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Determine the net cash flows from used for investing activities for the year.

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Determine the net cash flows from used for investing activities for the year.

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