28. Problem 13-7 Prepare a Statement of Cash Flows [LO13-1, LO13-2]

[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
Assets
Cash and cash equivalents	$	15			$	11
Accounts receivable		290				229
Inventory		156				195
Prepaid expenses		9				6
Total current assets		470				441
Property, plant, and equipment		508				430
Less accumulated depreciation		(83	)			(72	)
Net property, plant, and equipment		425				358
Long-term investments		25				32
Total assets	$	920			$	831
Liabilities and Stockholders' Equity
Accounts payable	$	301			$	224
Accrued liabilities		71				78
Income taxes payable		72				64
Total current liabilities		444				366
Bonds payable		198				171
Total liabilities		642				537
Common stock		161				201
Retained earnings		117				93
Total stockholders equity		278				294
Total liabilities and stockholders' equity	$	920			$	831

Weaver Company Income Statement For This Year Ended December 31
Sales					$	753
Cost of goods sold						449
Gross margin						304
Selling and administrative expenses						220
Net operating income						84
Nonoperating items:
Gain on sale of investments	$	5
Loss on sale of equipment		(2	)			3
Income before taxes						87
Income taxes						23
Net income					$	64

During this year, Weaver sold some equipment for $19 that had cost $31 and on which there was accumulated depreciation of $10. In addition, the company sold long-term investments for $12 that had cost $7 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $40 of its own stock. This year Weaver did not retire any bonds.

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Problem 13-7 Part 2

2. Using the information from Part 1, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for this year. (List any deduction in cash and cash outflows as negative amounts.)