Question
Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash $ -23 $ 12
Comparative financial statements for Weaver Company follow:
Weaver Company Comparative Balance Sheet at December 31 | ||
---|---|---|
This Year | Last Year | |
Assets | ||
Cash | $ -23 | $ 12 |
Accounts receivable | 334 | 228 |
Inventory | 153 | 195 |
Prepaid expenses | 9 | 5 |
Total current assets | 473 | 440 |
Property, plant, and equipment | 511 | 431 |
Less accumulated depreciation | 81 | 71 |
Net property, plant, and equipment | 430 | 360 |
Long-term investments | 27 | 34 |
Total assets | $ 930 | $ 834 |
Liabilities and Stockholders' Equity | ||
Accounts payable | $ 302 | $ 224 |
Accrued liabilities | 73 | 80 |
Income taxes payable | 73 | 64 |
Total current liabilities | 448 | 368 |
Bonds payable | 196 | 171 |
Total liabilities | 644 | 539 |
Common stock | 163 | 201 |
Retained earnings | 123 | 94 |
Total stockholders equity | 286 | 295 |
Total liabilities and stockholders' equity | $ 930 | $ 834 |
Weaver Company Income Statement For This Year Ended December 31 | ||
---|---|---|
Sales | $ 754 | |
Cost of goods sold | 449 | |
Gross margin | 305 | |
Selling and administrative expenses | 218 | |
Net operating income | 87 | |
Nonoperating items: | ||
Gain on sale of investments | $ 5 | |
Loss on sale of equipment | (2) | 3 |
Income before taxes | 90 | |
Income taxes | 23 | |
Net income | $ 67 |
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 $7 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $38 of its own stock. This year Weaver did not retire any bonds.
2. Using the information from Part 1, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for this year. (List any deduction in cash and cash outflows as negative amounts.)
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