Answered step by step
Verified Expert Solution
Link Copied!

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 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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Edgerston Audit

Authors: Don Akenson

1st Edition

0802709915, 978-0802709912

More Books

Students also viewed these Accounting questions