Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Prepare a statement of cash flows using the indirect method. Use the minus sign

ID: 2473219 • Letter: P

Question

Prepare a statement of cash flows using the indirect method. Use the minus sign to indicate cash outflows, a decrease in cash, or cash payments.


Barry Company

Statement of Cash Flows

For the Year Ended December 31, 2011

Cash flows from operating activities:

  

$  

  

$  

  

  

  

  

  

$  

  

$  

  

  

  

Net cash flow from operating activities

$  

Cash flows from investing activities:

  

$  

  

  

Net cash flow used for investing activities

  

Cash flows from financing activities:

  

$  

  

$  

  

  

  

Net cash flow used for financing activities

  

  

$  

Cash at the beginning of the year

  

Cash at the end of the year

$  

Barry Company

Statement of Cash Flows

For the Year Ended December 31, 2011

Cash flows from operating activities:

  

$  

  

$  

  

  

  

  

  

$  

  

$  

  

  

  

Net cash flow from operating activities

$  

Cash flows from investing activities:

  

$  

  

  

Net cash flow used for investing activities

  

Cash flows from financing activities:

  

$  

  

$  

  

  

  

Net cash flow used for financing activities

  

  

$  

Cash at the beginning of the year

  

Cash at the end of the year

$  

Explanation / Answer

Statement of Cash Flow Particulars Amount Total Amount Income                75,800.00 Gain on sale of invt             (25,000.00) Depreciation                38,000.00 Decrease in AR                  9,200.00 Increase in inventory             (16,000.00) Increase in AP                12,500.00 Cash flow from operating activities             94,500.00 Cash flow from Investing activities Sale of invt             125,000.00 Purchase of PPE           (150,000.00) Cash flow from Investing activities           (25,000.00) Cash flow from Financing activities Issue of Stock                50,000.00 Premium on stock                25,000.00 Redemption of Bonds             (75,000.00) Dividends Paid             (40,000.00) Cash flow from Financing activities           (40,000.00) Opening cash and cash equivalents             42,500.00 Closing cash and cash equivalents             72,000.00