Answered step by step
Verified Expert Solution
Link Copied!

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 $ 15 $ 13

Comparative financial statements for Weaver Company follow:

Weaver Company Comparative Balance Sheet at December 31
This Year Last Year
Assets
Cash $ 15 $ 13
Accounts receivable 295 229
Inventory 150 195
Prepaid expenses 8 5
Total current assets 468 442
Property, plant, and equipment 512 433
Less accumulated depreciation (81 ) (71 )
Net property, plant, and equipment 431 362
Long-term investments 25 31
Total assets $ 924 $ 835
Liabilities and Stockholders' Equity
Accounts payable $ 302 $ 225
Accrued liabilities 72 77
Income taxes payable 71 65
Total current liabilities 445 367
Bonds payable 196 171
Total liabilities 641 538
Common stock 161 202
Retained earnings 122 95
Total stockholders equity 283 297
Total liabilities and stockholders' equity $ 924 $ 835

Weaver Company Income Statement For This Year Ended December 31
Sales $ 753
Cost of goods sold 448
Gross margin 305
Selling and administrative expenses 219
Net operating income 86
Nonoperating items:
Gain on sale of investments $ 7
Loss on sale of equipment (3 ) 4
Income before taxes 90
Income taxes 22
Net income $ 68

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 $13 that had cost $6 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $41 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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting And Reporting

Authors: Barry Elliott, Jamie Elliott

20th Edition

1292399805, 978-1292399805

More Books

Students also viewed these Accounting questions

Question

What are the diff erences between groups and teams?

Answered: 1 week ago

Question

If you were Dans friend, what might you say to alter his behaviors?

Answered: 1 week ago