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 $ 9 $ 15

Comparative financial statements for Weaver Company follow:

Weaver Company Comparative Balance Sheet at December 31
This Year Last Year
Assets
Cash $ 9 $ 15
Accounts receivable 340 240
Inventory 125 175
Prepaid expenses 10 6
Total current assets 484 436
Property, plant, and equipment 610 470
Less accumulated depreciation 93 85
Net property, plant, and equipment 517 385
Long-term investments 16 19
Total assets $ 1,017 $ 840
Liabilities and Stockholders' Equity
Accounts payable $ 310 $ 230
Accrued liabilities 60 72
Income taxes payable 40 34
Total current liabilities 410 336
Bonds payable 290 180
Total liabilities 700 516
Common stock 210 250
Retained earnings 107 74
Total stockholders equity 317 324
Total liabilities and stockholders' equity $ 1,017 $ 840

Weaver Company Income Statement For This Year Ended December 31
Sales $ 800
Cost of goods sold 500
Gross margin 300
Selling and administrative expenses 213
Net operating income 87
Nonoperating items:
Gain on sale of investments $ 7
Loss on sale of equipment (4 ) 3
Income before taxes 90
Income taxes 27
Net income $ 63

During this year, Weaver sold some equipment for $20 that had cost $40 and on which there was accumulated depreciation of $16. In addition, the company sold long-term investments for $10 that had cost $3 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $40 of its own stock. This year Weaver did not retire any bonds.

Required:

1. Using the indirect method, determine the net cash provided by/used in operating activities for this year. (List any deduction in 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

Cost Benefit Analysis With Reference To Environment And Ecology

Authors: James H. Meisel, K. Puttaswamaiah

1st Edition

1138521329, 978-1138521322

More Books

Students also viewed these Accounting questions