Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash $ 9 $ 12
Comparative financial statements for Weaver Company follow:
Weaver Company Comparative Balance Sheet at December 31 | ||||||||
This Year | Last Year | |||||||
Assets | ||||||||
Cash | $ | 9 | $ | 12 | ||||
Accounts receivable | 305 | 230 | ||||||
Inventory | 156 | 195 | ||||||
Prepaid expenses | 8 | 6 | ||||||
Total current assets | 478 | 443 | ||||||
Property, plant, and equipment | 507 | 427 | ||||||
Less accumulated depreciation | (86 | ) | (70 | ) | ||||
Net property, plant, and equipment | 421 | 357 | ||||||
Long-term investments | 28 | 34 | ||||||
Total assets | $ | 927 | $ | 834 | ||||
Liabilities and Stockholders' Equity | ||||||||
Accounts payable | $ | 304 | $ | 226 | ||||
Accrued liabilities | 71 | 77 | ||||||
Income taxes payable | 72 | 64 | ||||||
Total current liabilities | 447 | 367 | ||||||
Bonds payable | 198 | 171 | ||||||
Total liabilities | 645 | 538 | ||||||
Common stock | 162 | 200 | ||||||
Retained earnings | 120 | 96 | ||||||
Total stockholders equity | 282 | 296 | ||||||
Total liabilities and stockholders' equity | $ | 927 | $ | 834 | ||||
Weaver Company Income Statement For This Year Ended December 31 | ||||||
Sales | $ | 753 | ||||
Cost of goods sold | 448 | |||||
Gross margin | 305 | |||||
Selling and administrative expenses | 223 | |||||
Net operating income | 82 | |||||
Nonoperating items: | ||||||
Gain on sale of investments | $ | 6 | ||||
Loss on sale of equipment | (3 | ) | 3 | |||
Income before taxes | 85 | |||||
Income taxes | 23 | |||||
Net income | $ | 62 | ||||
During this year, Weaver sold some equipment for $18 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 $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.
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started