The Comparative Balance Sheet of Barry Company for Years 1

question 81

Multiple Choice

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.​
What are the net cash flows from operating, investing, and financing activities for Year 2?

• A)operating: $94,500; investing: ($25,000); financing: ($40,000)
• B)operating: $54,500; investing: ($25,000); financing: $0
• C)operating: $94,500; investing: ($150,000); financing: $85,000
• D)operating: $134,200; investing: ($63,000); financing: ($40,000)

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Definitions:

Game Theory

A field of study that models and analyzes strategic interactions among rational decision-makers.

Game Theory

A study of strategic decision making, analyzing interactions with formalized incentive structures ("games").

Strategic Choices

Decisions made by individuals or organizations that have significant long-term implications on their objectives and activities.

Prisoners' Dilemma

A situation in game theory where two individuals acting in their own self-interest do not produce the optimal outcome for either party.