| The comparative balance sheet of Berry Company for Year 1 and 2 ended December 31, appears below in condensed form: | |||||||||||
| Year 2 | Year 1 | ||||||||||
| Cash | $72,000 | $42,500 | |||||||||
| Accounts Receivable (net) | 61,000 | 70,200 | |||||||||
| Inventories | 121,000 | 105,000 | |||||||||
| Investments | — | 100,000 | |||||||||
| Equipment | 515,000 | 425,000 | |||||||||
| Accumulated depreciation – equipment | -153,000 | -175,000 | |||||||||
| $616,000 | $567,700 | ||||||||||
| Accounts payable | $59,750 | $47,250 | |||||||||
| Bonds payable | — | 75,000 | |||||||||
| Commons stock, $20 par | 375,000 | 325,000 | |||||||||
| Premium on common stock | 50,000 | 25,000 | |||||||||
| Retained earning | 131,250 | 95,450 | |||||||||
| $616,000 | $567,700 | ||||||||||
| 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 | |||||||||||
| $150,000.00 | |||||||||||
| d). Bonds payable for $75,000 were retired by payment at their | |||||||||||
| face amount. | |||||||||||
| e). 2,500 shares of commons stock were issued at $30 fro 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. | |||||||||||
