Question
Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash $ 12 $ 12
Comparative financial statements for Weaver Company follow:
Weaver Company Comparative Balance Sheet at December 31 | ||||||||
This Year | Last Year | |||||||
Assets | ||||||||
Cash | $ | 12 | $ | 12 | ||||
Accounts receivable | 294 | 229 | ||||||
Inventory | 158 | 195 | ||||||
Prepaid expenses | 9 | 5 | ||||||
Total current assets | 473 | 441 | ||||||
Property, plant, and equipment | 513 | 435 | ||||||
Less accumulated depreciation | (81 | ) | (71 | ) | ||||
Net property, plant, and equipment | 432 | 364 | ||||||
Long-term investments | 24 | 30 | ||||||
Total assets | $ | 929 | $ | 835 | ||||
Liabilities and Stockholders' Equity | ||||||||
Accounts payable | $ | 303 | $ | 225 | ||||
Accrued liabilities | 71 | 79 | ||||||
Income taxes payable | 75 | 65 | ||||||
Total current liabilities | 449 | 369 | ||||||
Bonds payable | 199 | 172 | ||||||
Total liabilities | 648 | 541 | ||||||
Common stock | 162 | 200 | ||||||
Retained earnings | 119 | 94 | ||||||
Total stockholders equity | 281 | 294 | ||||||
Total liabilities and stockholders' equity | $ | 929 | $ | 835 | ||||
Weaver Company Income Statement For This Year Ended December 31 | ||||||
Sales | $ | 753 | ||||
Cost of goods sold | 449 | |||||
Gross margin | 304 | |||||
Selling and administrative expenses | 222 | |||||
Net operating income | 82 | |||||
Nonoperating items: | ||||||
Gain on sale of investments | $ | 6 | ||||
Loss on sale of equipment | (1 | ) | 5 | |||
Income before taxes | 87 | |||||
Income taxes | 24 | |||||
Net income | $ | 63 | ||||
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 $12 that had cost $6 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $38 of its own stock. This year Weaver did not retire any bonds.
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. (List any deduction in cash and cash outflows as negative amounts.)
First drop down options:
- Net cash provided by financing activities
- Net cash provided by investing activities
- Net cash provided by operating activities
- Net cash used in financing activities
- Net cash used in investing activities
- Net cash used in operating activities
Investing activities option:
- Additions to property, plant, and equipment
- Cash dividends paid
- Decrease in accounts payable
- Decrease in accounts receivable
- Decrease in accrued liabilities
- Decrease in income taxes payable
- Decrease in inventory
- Decrease in prepaid expenses
- Depreciation
- Gain on sale of equipment
- Gain on sale of investments
- Increase in accounts payable
- Increase in accounts receivable
- Increase in accrued liabilities
- Increase in common stock
- Increase in income taxes payable
- Increase in inventory
- Increase in prepaid expenses
- Issuance of bonds payable
- Loss on sale of equipment
Next
- Additions to property, plant, and equipment
- Cash dividends paid
- Decrease in accounts payable
- Decrease in accounts receivable
- Decrease in accrued liabilities
- Decrease in income taxes payable
- Decrease in inventory
- Decrease in prepaid expenses
- Depreciation
- Gain on sale of equipment
- Gain on sale of investments
- Increase in accounts payable
- Increase in accounts receivable
- Increase in accrued liabilities
- Increase in common stock
- Increase in income taxes payable
- Increase in inventory
- Increase in prepaid expenses
- Issuance of bonds payable
- Loss on sale of equipment
- Loss on sale of investments
- Proceeds from sale of equipment
- Proceeds from sale of long-term investments
- Repurchase of common stock
Next:
- Additions to property, plant, and equipment
- Cash dividends paid
- Decrease in accounts payable
- Decrease in accounts receivable
- Decrease in accrued liabilities
- Decrease in income taxes payable
- Decrease in inventory
- Decrease in prepaid expenses
- Depreciation
- Gain on sale of equipment
- Gain on sale of investments
- Increase in accounts payable
- Increase in accounts receivable
- Increase in accrued liabilities
- Increase in common stock
- Increase in income taxes payable
- Increase in inventory
- Increase in prepaid expenses
- Issuance of bonds payable
- Loss on sale of equipment
- Loss on sale of investments
- Proceeds from sale of equipment
- Proceeds from sale of long-term investments
- Repurchase of common stock
Next
- Net cash provided by financing activities
- Net cash provided by investing activities
- Net cash provided by operating activities
- Net cash used in financing activities
Financing activities NEXT 3 LINES
- Additions to property, plant, and equipment
- Cash dividends paid
- Decrease in accounts payable
- Decrease in accounts receivable
- Decrease in accrued liabilities
- Decrease in income taxes payable
- Decrease in inventory
- Decrease in prepaid expenses
- Depreciation
- Gain on sale of equipment
- Gain on sale of investments
- Increase in accounts payable
- Increase in accounts receivable
- Increase in accrued liabilities
- Increase in common stock
- Increase in income taxes payable
- Increase in inventory
- Increase in prepaid expenses
- Issuance of bonds payable
- Loss on sale of equipment
- Loss on sale of investments
- Proceeds from sale of equipment
- Proceeds from sale of long-term investments
- Repurchase of common stock
Line #5
- Net cash provided by financing activities
- Net cash provided by investing activities
- Net cash provided by operating activities
- Net cash used in financing activities
- Net cash used in investing activities
- Net cash used in operating activities
Line 6
- Net decrease in cash
- Net increase in cash
Statement of Cash Flows For This Year Ended December 31 Operating activities: Investing activities: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents
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