The comparative balance sheets of Barry Company, for Years 1 and 2 ended December 31, appear below in condensed form. 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.

Question

The comparative balance sheets of Barry Company, for Years 1 and 2 ended December 31, appear below in condensed form.​  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.​

Quizplus · Accepted Answer

The Answer of The comparative balance sheets of Barry Company, for Years 1 and 2 ended December 31, appear below in condensed form.​  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.​

The Comparative Balance Sheets of Barry Company, for Years 1