Question
Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash and cash equivalents $
Comparative financial statements for Weaver Company follow:
Weaver Company Comparative Balance Sheet at December 31 | ||||||||
This Year | Last Year | |||||||
Assets | ||||||||
Cash and cash equivalents | $ | 16 | $ | 11 | ||||
Accounts receivable | 291 | 228 | ||||||
Inventory | 157 | 196 | ||||||
Prepaid expenses | 9 | 6 | ||||||
Total current assets | 473 | 441 | ||||||
Property, plant, and equipment | 504 | 426 | ||||||
Less accumulated depreciation | (81 | ) | (71 | ) | ||||
Net property, plant, and equipment | 423 | 355 | ||||||
Long-term investments | 29 | 35 | ||||||
Total assets | $ | 925 | $ | 831 | ||||
Liabilities and Stockholders' Equity | ||||||||
Accounts payable | $ | 304 | $ | 225 | ||||
Accrued liabilities | 71 | 79 | ||||||
Income taxes payable | 74 | 63 | ||||||
Total current liabilities | 449 | 367 | ||||||
Bonds payable | 198 | 170 | ||||||
Total liabilities | 647 | 537 | ||||||
Common stock | 160 | 200 | ||||||
Retained earnings | 118 | 94 | ||||||
Total stockholders equity | 278 | 294 | ||||||
Total liabilities and stockholders' equity | $ | 925 | $ | 831 | ||||
Weaver Company Income Statement For This Year Ended December 31 | ||||||
Sales | $ | 751 | ||||
Cost of goods sold | 447 | |||||
Gross margin | 304 | |||||
Selling and administrative expenses | 222 | |||||
Net operating income | 82 | |||||
Nonoperating items: | ||||||
Gain on sale of investments | $ | 7 | ||||
Loss on sale of equipment | (2 | ) | 5 | |||
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 $13 that had cost $6 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.
Brewer_8e_Rechecks_2020_01_27
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.)
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