Question
Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash $ 16 $ 12
Comparative financial statements for Weaver Company follow:
Weaver Company Comparative Balance Sheet at December 31 | ||||||||
This Year | Last Year | |||||||
Assets | ||||||||
Cash | $ | 16 | $ | 12 | ||||
Accounts receivable | 291 | 231 | ||||||
Inventory | 153 | 196 | ||||||
Prepaid expenses | 9 | 5 | ||||||
Total current assets | 469 | 444 | ||||||
Property, plant, and equipment | 508 | 428 | ||||||
Less accumulated depreciation | (82 | ) | (70 | ) | ||||
Net property, plant, and equipment | 426 | 358 | ||||||
Long-term investments | 28 | 34 | ||||||
Total assets | $ | 923 | $ | 836 | ||||
Liabilities and Stockholders' Equity | ||||||||
Accounts payable | $ | 300 | $ | 226 | ||||
Accrued liabilities | 72 | 79 | ||||||
Income taxes payable | 71 | 65 | ||||||
Total current liabilities | 443 | 370 | ||||||
Bonds payable | 199 | 171 | ||||||
Total liabilities | 642 | 541 | ||||||
Common stock | 164 | 201 | ||||||
Retained earnings | 117 | 94 | ||||||
Total stockholders equity | 281 | 295 | ||||||
Total liabilities and stockholders' equity | $ | 923 | $ | 836 | ||||
Weaver Company Income Statement For This Year Ended December 31 | ||||||
Sales | $ | 751 | ||||
Cost of goods sold | 447 | |||||
Gross margin | 304 | |||||
Selling and administrative expenses | 223 | |||||
Net operating income | 81 | |||||
Nonoperating items: | ||||||
Gain on sale of investments | $ | 6 | ||||
Loss on sale of equipment | (3 | ) | 3 | |||
Income before taxes | 84 | |||||
Income taxes | 24 | |||||
Net income | $ | 60 | ||||
During this year, Weaver sold some equipment for $18 that had cost $31 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 $37 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.)
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