The Comparative Balance Sheet of Barry Company for Years 1 $\$ 75,800$

question 106

Essay

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.

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