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 | $ | 17 | $ | 11 | ||||
Accounts receivable | 290 | 230 | ||||||
Inventory | 156 | 194 | ||||||
Prepaid expenses | 8 | 5 | ||||||
Total current assets | 471 | 440 | ||||||
Property, plant, and equipment | 511 | 433 | ||||||
Less accumulated depreciation | (83 | ) | (70 | ) | ||||
Net property, plant, and equipment | 428 | 363 | ||||||
Long-term investments | 26 | 32 | ||||||
Total assets | $ | 925 | $ | 835 | ||||
Liabilities and Stockholders' Equity | ||||||||
Accounts payable | $ | 302 | $ | 225 | ||||
Accrued liabilities | 72 | 79 | ||||||
Income taxes payable | 71 | 64 | ||||||
Total current liabilities | 445 | 368 | ||||||
Bonds payable | 196 | 171 | ||||||
Total liabilities | 641 | 539 | ||||||
Common stock | 164 | 201 | ||||||
Retained earnings | 120 | 95 | ||||||
Total stockholders equity | 284 | 296 | ||||||
Total liabilities and stockholders' equity | $ | 925 | $ | 835 | ||||
Weaver Company Income Statement For This Year Ended December 31 | ||||||
Sales | $ | 751 | ||||
Cost of goods sold | 450 | |||||
Gross margin | 301 | |||||
Selling and administrative expenses | 221 | |||||
Net operating income | 80 | |||||
Nonoperating items: | ||||||
Gain on sale of investments | $ | 6 | ||||
Loss on sale of equipment | (2 | ) | 4 | |||
Income before taxes | 84 | |||||
Income taxes | 22 | |||||
Net income | $ | 62 | ||||
During this year, Weaver sold some equipment for $19 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 $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.
Required:
1. Using the indirect method, determine the net cash provided by/used in operating activities for this year. (List any deduction in cash and cash outflows as negative amounts.)
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