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 $ 3 $ 12 Accounts receivable 296 229 Inventory 159 194 Prepaid expenses 8 6 Total current assets 466 441 Property, plant, and equipment 515 436 Less accumulated depreciation (85 ) (71 ) Net property, plant, and equipment 430 365 Long-term investments 25 32 Total assets $ 921 $ 838 Liabilities and Stockholders' Equity Accounts payable $ 302 $ 226 Accrued liabilities 73 77 Income taxes payable 73 65 Total current liabilities 448 368 Bonds payable 196 172 Total liabilities 644 540 Common stock 160 201 Retained earnings 117 97 Total stockholders equity 277 298 Total liabilities and stockholders' equity $ 921 $ 838 Weaver Company Income Statement For This Year Ended December 31 Sales $ 753 Cost of goods sold 448 Gross margin 305 Selling and administrative expenses 223 Net operating income 82 Nonoperating items: Gain on sale of investments $ 5 Loss on sale of equipment (3 ) 2 Income before taxes 84 Income taxes 23 Net income $ 61 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 $12 that had cost $7 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. Required: 1. Using the indirect method, determine the net cash provided by/used in operating activities for this year.
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