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Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash $ 9 $ 15
Comparative financial statements for Weaver Company follow:
Weaver Company Comparative Balance Sheet at December 31 | ||||||
This Year | Last Year | |||||
Assets | ||||||
Cash | $ | 9 | $ | 15 | ||
Accounts receivable | 340 | 240 | ||||
Inventory | 125 | 175 | ||||
Prepaid expenses | 10 | 6 | ||||
Total current assets | 484 | 436 | ||||
Property, plant, and equipment | 610 | 470 | ||||
Less accumulated depreciation | 93 | 85 | ||||
Net property, plant, and equipment | 517 | 385 | ||||
Long-term investments | 16 | 19 | ||||
Total assets | $ | 1,017 | $ | 840 | ||
Liabilities and Stockholders' Equity | ||||||
Accounts payable | $ | 310 | $ | 230 | ||
Accrued liabilities | 60 | 72 | ||||
Income taxes payable | 40 | 34 | ||||
Total current liabilities | 410 | 336 | ||||
Bonds payable | 290 | 180 | ||||
Total liabilities | 700 | 516 | ||||
Common stock | 210 | 250 | ||||
Retained earnings | 107 | 74 | ||||
Total stockholders equity | 317 | 324 | ||||
Total liabilities and stockholders' equity | $ | 1,017 | $ | 840 | ||
Weaver Company Income Statement For This Year Ended December 31 | ||||||
Sales | $ | 800 | ||||
Cost of goods sold | 500 | |||||
Gross margin | 300 | |||||
Selling and administrative expenses | 213 | |||||
Net operating income | 87 | |||||
Nonoperating items: | ||||||
Gain on sale of investments | $ | 7 | ||||
Loss on sale of equipment | (4 | ) | 3 | |||
Income before taxes | 90 | |||||
Income taxes | 27 | |||||
Net income | $ | 63 | ||||
During this year, Weaver sold some equipment for $20 that had cost $40 and on which there was accumulated depreciation of $16. In addition, the company sold long-term investments for $10 that had cost $3 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.
Required:
1. Using the indirect method, determine the net cash provided by/used in operating activities for this year.
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