1 For the just completed year, Hanna Company had net income of $60,000. Balances in the company's current asset and current liability accounts at the beginning and end of the year were as follows. December 31 End of Beginning Year of Year Current assets Cash and cash equivalents $ 55,000 $ 14,000 Accounts receivable $ 160,000 $100,000 Taventory $43,000 $ 361,000 Prepaid expenses $ 11,500 $ 14,000 Current abilities Accounts payable $365,000 $392,000 Accrued liabilities $9.00 $ 12,500 Income taxes payable $ 35,000 26,000 co The Accumulated Depreciation account had total credits of 548.000 during the yeat. Hanna Company did not record any gains or losses during the year Required: Using the Indirect method, determine the net cash provided by operating activities for the year. (List any deduction in cash and cash outflows as negative amounts.) terences Hanna Company Statement of Cash Flows-Indirect Method (partial) 0 $ 0 ! 2 Required information The following information applies to the questions displayed below) Comparative financial statements for Weaver Company follow, Weaver Company Comparative Balance Sheet at December 31 This Year Last Year $ 17 290 157 9 473 588 (81) 427 27 $927 $ 11 229 195 5 440 429 (71) 358 33 $831 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Long-term investments Total assets Liabilities and Stockholders' Equity Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 301 72 71 444 198 642 162 123 285 $ 927 $225 78 64 367 171 538 200 93 293 $831 Weaver Company Income Statement For This Year Ended December 31 Sales cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating itens: Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes 5 754 448 306 220 86 $ 7 (2) aan S 91 23 418 Selling and administrative expenses Net operating income Nonoperating items! Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes Net income $ 7 (2) 5 91 23 $ 68 During this year, Weaver sold some equipment for $18 that had cost $30 and on which there was accumulated depreciation of $10. In addition, the company sold long-term investments for $13 that had cost $6 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $38 of its own stock. This year Weaver did not retire any bonds. Required: 1. Using the indirect method, determine the net cash provided by used in operating activities for this year (List any deduction in con and cosh outflows as negative amounts.) Weaver Company Statement of Cash Flows-Indirect Method (partial) 0 0 S Required information [The following information applies to the questions displayed below.] Comparative financial statements for Weaver Company follow. Weaver Company Comparative Balance Sheet at December 31 This Year Last Year $ 17 290 157 9 473 588 (81 427 27 $ 927 $ 11 229 195 5 440 429 (71) 358 33 5831 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Long-term investments Total assets Liabilities and Stockholders' Equity Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $225 $ 301 72 71 444 198 642 162 123 285 64 367 171 538 200 93 293 $831 $ 927 Weaver Company Income Statement For This Year Ended December 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes 5 754 448 306 220 86 $ 7 (2) 5 91 23 ercises 91 23 Income before taxes Income taxes Net Income During this year. Weaver sold some equipment for $18 that had cost $30 and on which there was accumulated depreciation of $10. In addition, the company sold long term investments for S13 that had cost 56 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $38 of its own stock. This year Weaver did not retire any bonds prepare a statement of cash flows 2 Using the information from Part 1, along with an analysis of the remaining balance sheet accour for this year. (List any deduction in cash and cash outflows as negative amounts.) Weaver Company Statement of Cash Flows For This Year Ended December 31 Operating activities Investing activities 0 Financing activities 0 0 Beginning cash and cash equivalents Ending cash and cash equivalents $ 0