Below are certain events that took place at Hazzard, Inc., last year:

a) Collected cash from customers

b) Paid cash to repurchase its own stock

c) Borrowed money from a creditor

d) Paid suppliers for inventory purchases

e) Repaid the principal amount of a debt

f) Paid interest to lenders

g) Paid a cash dividend to stockholders

h) Sold common stock

i) Loaned money to another entity

j) Paid taxes to the government

k) Paid wages and salaries to employees

l) Purchased equipment with cash

m) Paid bills to insurers and utility providers

Required:

Prepare an answer sheet with the following headings:

	Activity
Transaction	Operating	Investing	Financing
a	x
b		x
c	x
d	x
e		x
f			x
g			x
h	x
i			x
j	x
k			x
l			x
m	x

Enter the cash inflows and outflows above on your answer sheet and indicate how each of them would be classified on a statement of cash flows. Place an X in the Operating, Investing, or Financing column as appropriate.

Problem: Prepare a Statement of Cash Flows

Comparative financial statements for Weaver Company follow:

Weaver Company

Comparative Balance Sheet

December 31, 2014 and 2013

2014 2013

Assets

Cash $ 9 $ 15

Accounts receivable 340 240

Inventory 125 175

Prepaid expenses 10 6

Total current assets 484 436

Property, plant, and equipment 610 470

Less accumulated depreciation 93 85

Net property, plant, and equipment 517 385

Long-term investments 16 19

Total assets $1,017 $840

Liability and Stockholders’ Equity

Accounts payable $310 $230

Accrued liabilities 60 72

Income taxes payable 40 34

Total current liabilities 410 336

Bonds payable 290 180

Total liabilities 700 516

Common stock 210 250

Retaining earnings 107 74

Total stockholders’ equity 317 324 Total liabilities and stockholders’ equity $1,017 $840

Weaver Company

Income Statement

For the Year Ended December 31, 2014

Sales $800

Cost of goods sold 500

Gross Margin 300

Selling and administrative expenses 213

Net Operating income 87

Nonoperating items:

Gain on sale of investments $7

Loss on sale of equipment (4) 3

Income before taxes 90

Income taxes 27

Net income $63

During 2014, Weaver sold some equipment for $20 that had cost $40 and on which there was accumulated depreciation of $16. In addition, the company sold long-term investments for $10 that had cost $3 when purchased several years ago. A cash dividend was paid during 2014 and the company repurchased $40 of its own stock. Weaver did not retire any bonds during 2014.

Required:

1) Using the indirect method, determine the net cash provided by operating activities for 2014.

2) Using the information in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for 2014.