Question
Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash $ 20 $ 12
Comparative financial statements for Weaver Company follow:
Weaver Company Comparative Balance Sheet at December 31 | ||||||||
This Year | Last Year | |||||||
Assets | ||||||||
Cash | $ | 20 | $ | 12 | ||||
Accounts receivable | 294 | 228 | ||||||
Inventory | 151 | 195 | ||||||
Prepaid expenses | 9 | 5 | ||||||
Total current assets | 474 | 440 | ||||||
Property, plant, and equipment | 515 | 436 | ||||||
Less accumulated depreciation | (81 | ) | (71 | ) | ||||
Net property, plant, and equipment | 434 | 365 | ||||||
Long-term investments | 27 | 34 | ||||||
Total assets | $ | 935 | $ | 839 | ||||
Liabilities and Stockholders' Equity | ||||||||
Accounts payable | $ | 304 | $ | 225 | ||||
Accrued liabilities | 70 | 78 | ||||||
Income taxes payable | 74 | 65 | ||||||
Total current liabilities | 448 | 368 | ||||||
Bonds payable | 200 | 172 | ||||||
Total liabilities | 648 | 540 | ||||||
Common stock | 161 | 202 | ||||||
Retained earnings | 126 | 97 | ||||||
Total stockholders equity | 287 | 299 | ||||||
Total liabilities and stockholders' equity | $ | 935 | $ | 839 | ||||
Weaver Company Income Statement For This Year Ended December 31 | ||||||
Sales | $ | 755 | ||||
Cost of goods sold | 445 | |||||
Gross margin | 310 | |||||
Selling and administrative expenses | 220 | |||||
Net operating income | 90 | |||||
Nonoperating items: | ||||||
Gain on sale of investments | $ | 6 | ||||
Loss on sale of equipment | (2 | ) | 4 | |||
Income before taxes | 94 | |||||
Income taxes | 24 | |||||
Net income | $ | 70 | ||||
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 $13 that had cost $7 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $41 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 cash and cash outflows as negative amounts.)
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