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

question 102

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)

---

Definitions:

Marginal Utility

The supplementary contentment or value a shopper obtains by buying an extra unit of a certain item or service.

Total Utility

The overall satisfaction or value a consumer receives from consuming a given quantity of goods or services.

Negative Marginal Utility

The decrease in satisfaction or usefulness obtained from consuming one more unit of a product, leading to decreased overall utility.