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.

Question

contestada

Respuesta :

Tundexi Tundexi · Answer 1 · 2021-05-14T20:58:20+02:00

Answer:

Note: Full question is attached as picture below

Barry Company

Statement of Cash Flows

For the Tear Ended December 31, Year 2

Cash flows from operating activities:

Net income $75,800

Adjustments to reconcile net income to

net cash flow from operating activities:

Depreciation expense $38,000

Gain on sale of investments -$25,000

Changes in current operating

assets & liabilities:

Decrease in Accounts receivable $9,200

Increase in inventories -$16,000

Increase in Accounts payable $12,500

Net cash flow from operating activities $94,500

Cash flows from investing activities:

Sale of investments $125,000

Purchase of equipment -$150,000

Net cash flow used for investing activities -$25,000

Cash flows from financing activities:

Retirement of bonds payable -$75,000

Issuance of common stock $75,000

Payment of dividends -$40,000

Net cash flow used for financing activities -$40,000

Net increase in cash $29,500

Cash at the beginning of the year $42,500

Cash at the end of the year $72,000