Refer to the financial statement data for Weaver Company in Problem 15—8.

Required:

1. Using the direct method, adjust the company’s income statement for 2009 to a cash basis.
2. Using the information obtained in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for 2009.

Transcribed Image Text:

Weaver Company Comparative Balance Sheet December 31, 2009 and 2008 2009 2008 Assets Cash ... Accounts receivable $ 15 340 240 Inventory.. Prepaid expenses. Plant and equipment. Less accumulated depreciation.. Long-term investments 125 175 10 610 470 (93) (85) 16 19 Total assets. $1,017 $840 Liabilities and Stockholders' Equity Accounts payable $ 310 $230 Accrued liabilities 60 72 Bonds payable 290 180 Deferred income taxes 40 34 Common stock 250 210 Retained earnings.. Total liabilities and stockholders' equity.... $1,017 107 74 $840 Weaver Company Income Statement For the Year Ended December 31, 2009 Sales..... $800 Cost of goods sold 500 Gross margin .. Selling and administrative expenses. 300 213 Net operating income Nonoperating items: Gain on sale of investments Loss on sale of equipment 87 $7 4 3 Income before taxes 90 Income taxes. 27 $ 63 Net income