Comparative financial statements for Weaver Company follow Weaver Company Comparative Balance Sheet Chis Year Last Year Assets $ 13 230 165 Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment 310 105 431 540 414 430 40 390 Less accumulated depreciation Net property, plant, and equipment Long-term investments Total assets 485 2 8 $ 944 $ 837 Liabilities and Stockholders Equity Accounts Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Common stock Retained earnings Total stockholders equity S 250 65 70 385 210 595 226 123 349 $ 944 payable $ 215 80 63 358 130 488 300 49 349 $ 837 Total liabilities and stockholders' equity Weaver Company Income Statement For This Year Ended December 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: $730 415 315 204 Gain on sale of investments $ 15 (61 Loss on sale of equipment Income before taxes Income taxes Net income 120 36 $ 84 During this year, Weaver sold some equipment for $13 that had cost $34 and on which there was accumulated depreciation of $15. In addition, the company sold long-term investments for $20 that had cost $5 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $74 of its own stock. This year Weaver did not retire any bonds. Required: 1. Using the direct method, adjust the company's income statement for this year to a cash basis 2. Using the information obtained in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for this year. Answer is not complete. Complete this question by entering your answers in the tabs below Required 1Required 2 Using the direct method, adjust the company's income statement for this year to a cash basis. (Adjustment amounts that are to be deducted should be indicated with a minus sign.) Weaver Company Direct Method of Determining the Net Cash flows from Operating activities Sales 730 Adjustments to a cash basis Increase in accounts receivable 730 Cost of goods sold 415 Adjustments to a cash basis: Increase in accounts payable Decrease in inventory 415 Selling and administrative expenses 204 Adjustments to a cash basis Increase in prepaid expenses Decrease in accrued liabilities 15 221 Income taxes 36 Adjustments to a cash basis Increase in income taxes payable 36 Net cash provided by operating activities 58 Required Required 2 > Complete this question by entering your answers in the tabs below Required 1Required 2 Using the information obtained in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for this year. (Cash outflows and amounts to be deducted should be indicated with a minus sign Weaver Company Statement of Cash Flows For This Year Ended December 31 Operating activities: Cash received from customers Less cash disbursements for: 650 Income taxes Selling and administrative expenses Cost of merchandise purchased 29 191 320C Total cash disbursements Net cash provided by operating activities Investing activities: Additions to property, plant and equipmet(144) Proceeds from sale of equipment Proceeds from sale of long-term investments 540 110 13 20 Net cash used for investing activities Financing activities: Cash dividends paid Repurchase of common stock Issuance of bonds payable (74) 80 Net decrease in cash Beginning cash and cash equivalents Ending cash and cash equivalents
