Question
Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash and cash equivalents $
Comparative financial statements for Weaver Company follow:
Weaver Company | ||
---|---|---|
Comparative Balance Sheet | ||
at December 31 | ||
This Year | Last Year | |
Assets | ||
Cash and cash equivalents | $ 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 and repurchased $40 of its own stock but did not retire any bonds.
Required:
1. Using the indirect method, determine the net cash provided by (used in) operating activities for this year.
Note: Cash outflows and amounts to be deducted should be indicated with a minus sign.
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