The Comparative Balance Sheet of Barry Company for Years 1

question 47

Short Answer

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.

Distinguish between Chapter 7 and Chapter 13 bankruptcy proceedings and their qualifying criteria.

Outline the requirements and process for a liquidation proceeding under Chapter 7 bankruptcy.

Understand the significance of the 2005 Bankruptcy Reform Act changes on state homestead exemptions.

Grasp the necessity for product identification and tracking of hazardous substances under RCRA.

---

Definitions:

Accounts Payable Period

The average duration it takes for a company to pay off its suppliers after receiving goods or services.

Accounts Receivable Period

The mean duration that a company requires to receive payments from credit sales, reflecting the effectiveness of its policies on credit and collections.

Operating Cycle

The period of time between the acquisition of inventory by a company and the receipt of cash from accounts receivable from the sale of that inventory.

Inventory Period

The time it takes for a company to turn its inventory into sales.