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

Question

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

Quizplus · Accepted Answer

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

The Comparative Balance Sheet of Barry Company for Years 1