Year 2 Year 1 Cash $ 72,000 $42,500 Accounts Receivable (net) 61,000 70,200 Inventories 121,000 105,000 Investments
Year 2 Year 1 Cash $ 72,000 $42,500 Accounts Receivable (net) 61,000 70,200 Inventories 121,000 105,000 Investments
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter15: Statement Of Cash Flows
Section: Chapter Questions
Problem 15E
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Question
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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
|
61,000
|
70,200
|
|
Inventories |
121,000
|
105,000
|
Investments |
-
|
100,000
|
Equipment |
515,000
|
425,000
|
Accumulated |
(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 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
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