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Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash $ 7 $ 11
Comparative financial statements for Weaver Company follow:
Weaver Company Comparative Balance Sheet at December 31 | ||||||||
This Year | Last Year | |||||||
Assets | ||||||||
Cash | $ | 7 | $ | 11 | ||||
Accounts receivable | 309 | 229 | ||||||
Inventory | 158 | 196 | ||||||
Prepaid expenses | 9 | 5 | ||||||
Total current assets | 483 | 441 | ||||||
Property, plant, and equipment | 509 | 430 | ||||||
Less accumulated depreciation | (86 | ) | (71 | ) | ||||
Net property, plant, and equipment | 423 | 359 | ||||||
Long-term investments | 27 | 33 | ||||||
Total assets | $ | 933 | $ | 833 | ||||
Liabilities and Stockholders' Equity | ||||||||
Accounts payable | $ | 304 | $ | 224 | ||||
Accrued liabilities | 73 | 78 | ||||||
Income taxes payable | 75 | 64 | ||||||
Total current liabilities | 452 | 366 | ||||||
Bonds payable | 196 | 170 | ||||||
Total liabilities | 648 | 536 | ||||||
Common stock | 165 | 202 | ||||||
Retained earnings | 120 | 95 | ||||||
Total stockholders equity | 285 | 297 | ||||||
Total liabilities and stockholders' equity | $ | 933 | $ | 833 | ||||
Weaver Company Income Statement For This Year Ended December 31 | ||||||
Sales | $ | 751 | ||||
Cost of goods sold | 449 | |||||
Gross margin | 302 | |||||
Selling and administrative expenses | 220 | |||||
Net operating income | 82 | |||||
Nonoperating items: | ||||||
Gain on sale of investments | $ | 7 | ||||
Loss on sale of equipment | (3 | ) | 4 | |||
Income before taxes | 86 | |||||
Income taxes | 24 | |||||
Net income | $ | 62 | ||||
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 $13 that had cost $6 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $37 of its own stock. This year Weaver did not retire any bonds.
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