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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 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 | $ | 11 | $ | 12 | ||||
Accounts receivable | 291 | 229 | ||||||
Inventory | 159 | 195 | ||||||
Prepaid expenses | 9 | 5 | ||||||
Total current assets | 470 | 441 | ||||||
Property, plant, and equipment | 513 | 435 | ||||||
Less accumulated depreciation | (81 | ) | (71 | ) | ||||
Net property, plant, and equipment | 432 | 364 | ||||||
Long-term investments | 25 | 31 | ||||||
Total assets | $ | 927 | $ | 836 | ||||
Liabilities and Stockholders' Equity | ||||||||
Accounts payable | $ | 305 | $ | 226 | ||||
Accrued liabilities | 73 | 80 | ||||||
Income taxes payable | 73 | 64 | ||||||
Total current liabilities | 451 | 370 | ||||||
Bonds payable | 196 | 171 | ||||||
Total liabilities | 647 | 541 | ||||||
Common stock | 160 | 200 | ||||||
Retained earnings | 120 | 95 | ||||||
Total stockholders equity | 280 | 295 | ||||||
Total liabilities and stockholders' equity | $ | 927 | $ | 836 | ||||
Weaver Company Income Statement For This Year Ended December 31 | ||||||
Sales | $ | 753 | ||||
Cost of goods sold | 446 | |||||
Gross margin | 307 | |||||
Selling and administrative expenses | 223 | |||||
Net operating income | 84 | |||||
Nonoperating items: | ||||||
Gain on sale of investments | $ | 7 | ||||
Loss on sale of equipment | (2 | ) | 5 | |||
Income before taxes | 89 | |||||
Income taxes | 24 | |||||
Net income | $ | 65 | ||||
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.
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