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.
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.
Excel Applications for Accounting Principles
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Chapter14: Statement Of Cash Flows (cashflow)
Section: Chapter Questions
Problem 1R: The comparative balance sheet of Prime Sports Gear, Inc., at December 31, the end of the fiscal...
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Question
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
|
61,000
|
70,200
|
|
Inventories |
121,000
|
105,000
|
Investments |
-
|
100,000
|
Equipment |
515,000
|
425,000
|
(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
|
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 |
|
(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 | |||
Cash flows from operating activities: | |||
$fill in the blank 2 | |||
Adjustments to reconcile net income to net cash flow from operating activities: | |||
$fill in the blank 4 | |||
fill in the blank 6 | |||
Changes in current operating assets and liabilities: | |||
fill in the blank 8 | |||
fill in the blank 10 | |||
fill in the blank 12 | |||
Net cash flow from operating activities | $fill in the blank 13 | ||
Cash flows from investing activities: | |||
$fill in the blank 15 | |||
fill in the blank 17 | |||
Net cash flow used for investing activities | fill in the blank 18 | ||
Cash flows from financing activities: | |||
$fill in the blank 20 | |||
fill in the blank 22 | |||
fill in the blank 24 | |||
Net cash flow used for financing activities | fill in the blank 25 | ||
$fill in the blank 27 | |||
Cash at the beginning of the year | fill in the blank 28 | ||
Cash at the end of the year | $fill in the blank 29 |
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