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 $ 10 $ 12

Comparative financial statements for Weaver Company follow:

Weaver Company Comparative Balance Sheet at December 31
This Year Last Year
Assets
Cash $ 10 $ 12
Accounts receivable 306 230
Inventory 156 196
Prepaid expenses 8 5
Total current assets 480 443
Property, plant, and equipment 510 431
Less accumulated depreciation (86 ) (71 )
Net property, plant, and equipment 424 360
Long-term investments 28 34
Total assets $ 932 $ 837
Liabilities and Stockholders' Equity
Accounts payable $ 303 $ 226
Accrued liabilities 72 79
Income taxes payable 74 65
Total current liabilities 449 370
Bonds payable 197 172
Total liabilities 646 542
Common stock 161 200
Retained earnings 125 95
Total stockholders equity 286 295
Total liabilities and stockholders' equity $ 932 $ 837

Weaver Company Income Statement For This Year Ended December 31
Sales $ 755
Cost of goods sold 447
Gross margin 308
Selling and administrative expenses 218
Net operating income 90
Nonoperating items:
Gain on sale of investments $ 6
Loss on sale of equipment (2 ) 4
Income before taxes 94
Income taxes 25
Net income $ 69

During this year, Weaver sold some equipment for $19 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 $39 of its own stock. This year Weaver did not retire any bonds.image text in transcribed

Required information 2. Using the information in (1) above, 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.) Weaver Company Statement of Cash Flows For This Year Ended Decem ber 31 Operating activities: Investing activities: Financing activities: Beginning cash and cash equivalents |Ending cash and cash equivalents

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

Cost Accounting

Authors: Mark Lee Inman

2nd Edition

0434908320, 978-0434908325

More Books

Students also viewed these Accounting questions

Question

5 About some of the benefits of e-commerce to sellers and buyers.

Answered: 1 week ago

Question

Outline Aquinass methodology.

Answered: 1 week ago

Question

Determine Leading or Lagging Power Factor in Python.

Answered: 1 week ago

Question

What are some of the hiring standards to avoid?

Answered: 1 week ago

Question

What are some metrics for evaluating recruitment and selection?

Answered: 1 week ago