Question
Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet December 31, 2014 and 2013 2014 2013 Assets Cash $ 5 $ 12
Comparative financial statements for Weaver Company follow: |
Weaver Company Comparative Balance Sheet December 31, 2014 and 2013 | ||||
2014 | 2013 | |||
Assets | ||||
Cash | $ | 5 | $ | 12 |
Accounts receivable | 308 | 229 | ||
Inventory | 158 | 195 | ||
Prepaid expenses | 9 | 6 | ||
Total current assets | 480 | 442 | ||
Property, plant, and equipment | 515 | 437 | ||
Less accumulated depreciation | (85) | (71) | ||
Net property, plant, and equipment | 430 | 366 | ||
Long-term investments | 24 | 30 | ||
Total assets | $ | 934 | $ | 838 |
Liabilities and Stockholders' Equity | ||||
Accounts payable | $ | 305 | $ | 225 |
Accrued liabilities | 70 | 80 | ||
Income taxes payable | 73 | 64 | ||
Total current liabilities | 448 | 369 | ||
Bonds payable | 198 | 172 | ||
Total liabilities | 646 | 541 | ||
Common stock | 164 | 201 | ||
Retained earnings | 124 | 96 | ||
Total stockholders equity | 288 | 297 | ||
Total liabilities and stockholders' equity | $ | 934 | $ | 838 |
Weaver Company Income Statement For the Year Ended December 31, 2014 | ||||
Sales | $ | 755 | ||
Cost of goods sold | 448 | |||
Gross margin | 307 | |||
Selling and administrative expenses | 223 | |||
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Net operating income | 84 | |||
Nonoperating items: | ||||
Gain on sale of investments | $ | 7 | ||
Loss on sale of equipment | (2) | 5 | ||
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Income before taxes | 89 | |||
Income taxes | 24 | |||
Net income | $ | 65 | ||
During 2014, Weaver sold some equipment for $18 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. A cash dividend was paid during 2014 and the company repurchased $37 of its own stock. Weaver did not retire any bonds during 2014. |
2.
Required: | |
1. | Using the indirect method, determine the net cash for operating activities for 2014. (Negative amount should be entered with a minus sign.) |
3.
2. | Using the information in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for 2014. (List any deduction in cash and cash outflows as negative amounts.) |
4.
Required: | |
1. | Using the indirect method, determine the net cash for operating activities for 2014. (Negative amount should be entered with a minus sign.) |
5.
2. | Using the information in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for 2014. (List any deduction in cash and cash outflows as negative amounts.) |
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