The comparative balance sheet of Barry Company for Years 1 and 2 ended December 31 appears 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 sheet of Barry Company for Years 1 and 2 ended December 31 appears 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 sheet of Barry Company for Years 1 and 2 ended December 31 appears 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 Sheet of Barry Company for Years 1