chapter 13 question 1

Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year $ 14 292 156 8 470 513 (80) 433 24 $ 11 229 195 5 440 433 (71) 362 31 $833 $ 927 Assets Cash and cash equivalents 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 $ 303 71 71 445 199 644 164 119 283 $225 79 65 369 170 539 201 93 294 $833 $ 927 Weaver Company Income Statement For This Year Ended December 31 Sales Cost of goods sold $ 751 447 co 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 Net income $ 751 447 384 222 82 $ 6 5 87 24 $63 During this year, Weaver sold some equipment for $19 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 $7 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $37 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 ce and cash outflows os negative amounts.) Required: 1. Using the indirect method, determine the net cash provided by/used in operating activities for this year. (L and cash outflows as negative amounts.) 63 24 (6) Weaver Company Statement of Cash Flows-Indirect Method (partial) Net income Adjustments to convert net income to a cash basis Depreciation Gain on sale of investments Loss on sale of equipment Decrease in accounts receivable Decrease in inventory Increase in prepaid expenses Increase in accounts payable Decrease in accrued liabilities Increase in income taxes payable A 19 Net cash provided by operating activities S 82