Question
Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash $ -24 $ 13
Comparative financial statements for Weaver Company follow:
Weaver Company Comparative Balance Sheet at December 31 | ||
This Year | Last Year | |
---|---|---|
Assets | ||
Cash | $ -24 | $ 13 |
Accounts receivable | 340 | 229 |
Inventory | 151 | 196 |
Prepaid expenses | 8 | 5 |
Total current assets | 475 | 443 |
Property, plant, and equipment | 513 | 434 |
Less accumulated depreciation | 82 | 71 |
Net property, plant, and equipment | 431 | 363 |
Long-term investments | 25 | 31 |
Total assets | $ 931 | $ 837 |
Liabilities and Stockholders' Equity | ||
Accounts payable | $ 300 | $ 226 |
Accrued liabilities | 72 | 80 |
Income taxes payable | 72 | 64 |
Total current liabilities | 444 | 370 |
Bonds payable | 200 | 170 |
Total liabilities | 644 | 540 |
Common stock | 164 | 201 |
Retained earnings | 123 | 96 |
Total stockholders equity | 287 | 297 |
Total liabilities and stockholders' equity | $ 931 | $ 837 |
Weaver Company Income Statement For This Year Ended December 31 | ||
Sales | $ 750 | |
---|---|---|
Cost of goods sold | 448 | |
Gross margin | 302 | |
Selling and administrative expenses | 219 | |
Net operating income | 83 | |
Nonoperating items: | ||
Gain on sale of investments | $ 7 | |
Loss on sale of equipment | (2) | 5 |
Income before taxes | 88 | |
Income taxes | 24 | |
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 $37 of its own stock. This year Weaver did not retire any bonds.
1. Using the indirect method, determine the net cash provided by/used in operating activities for this year.
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.
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