Answered step by step
Verified Expert Solution
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 $ 29 $ 12
Comparative financial statements for Weaver Company follow:
Weaver Company Comparative Balance Sheet at December 31 | ||
This Year | Last Year | |
---|---|---|
Assets | ||
Cash | $ 29 | $ 12 |
Accounts receivable | 292 | 231 |
Inventory | 151 | 195 |
Prepaid expenses | 9 | 6 |
Total current assets | 481 | 444 |
Property, plant, and equipment | 510 | 430 |
Less accumulated depreciation | (83) | (70) |
Net property, plant, and equipment | 427 | 360 |
Long-term investments | 25 | 31 |
Total assets | $ 933 | $ 835 |
Liabilities and Stockholders' Equity | ||
Accounts payable | $ 303 | $ 224 |
Accrued liabilities | 72 | 79 |
Income taxes payable | 74 | 65 |
Total current liabilities | 449 | 368 |
Bonds payable | 196 | 171 |
Total liabilities | 645 | 539 |
Common stock | 162 | 201 |
Retained earnings | 126 | 95 |
Total stockholders equity | 288 | 296 |
Total liabilities and stockholders' equity | $ 933 | $ 835 |
Weaver Company Income Statement For This Year Ended December 31 | ||
Sales | $ 752 | |
---|---|---|
Cost of goods sold | 447 | |
Gross margin | 305 | |
Selling and administrative expenses | 218 | |
Net operating income | 87 | |
Nonoperating items: | ||
Gain on sale of investments | $ 7 | |
Loss on sale of equipment | (1) | 6 |
Income before taxes | 93 | |
Income taxes | 23 | |
Net income | $ 70 |
During this year, Weaver sold some equipment for $19 that had cost $30 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 $39 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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started