Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Accrued liabilities Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Long-term investments Total assets Liabilities and Stockholders' Equity Accounts payable Income taxes payable Total current liabilities $ 4 $ 16 370 260 125 180 4 2 503 458 570 460 80 70 490 390 23 36 $ 1,016 $ 884 $ 280 $ 230 40 50 73 66 393 346 Bonds payable 245 160 Total liabilities 638 506 Common stock 225 300 Retained earnings 153 78 Total stockholders' equity 378 378 Total liabilities and stockholders' equity $ 1,016 $ 884 Weaver Company Income Statement For This Year Ended December 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes Net income $ 760 430 330 210 120 $ 13 (3) 10 130 39 $ 91 During this year, Weaver sold some equipment for $16 that had cost $37 and on which there was accumulated depreciation of $18. In addition, the company sold long-term investments for $26 that had cost $13 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $75 of its own stock. This year Weaver did not retire any bonds. Required: 1. Using the direct method, adjust the company's income statement for this year to a cash basis. 2. Using the information obtained in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for this year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using the direct method, adjust the company's income statement for this year to a cash basis. (Adjustment amounts that are to be deducted should be indicated with a minus sign.) Weaver Company Direct Method of Determining the Net Cash flows from Operating activities Adjustments to a cash basis: Adjustments to a cash basis: Selling and administrative expenses Adjustments to a cash basis: Income taxes Adjustments to a cash basis: 0 0 0 0 $ < Required 1 Required 2 > Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Accrued liabilities Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Long-term investments Total assets Liabilities and Stockholders' Equity Accounts payable Income taxes payable Total current liabilities $ 4 $ 16 370 260 125 180 4 2 503 458 570 460 80 70 490 390 23 36 $ 1,016 $ 884 $ 280 $ 230 40 50 73 66 393 346 Bonds payable 245 160 Total liabilities 638 506 Common stock 225 300 Retained earnings 153 78 Total stockholders' equity 378 378 Total liabilities and stockholders' equity $ 1,016 $ 884 Weaver Company Income Statement For This Year Ended December 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes Net income $ 760 430 330 210 120 $ 13 (3) 10 130 39 $ 91 During this year, Weaver sold some equipment for $16 that had cost $37 and on which there was accumulated depreciation of $18. In addition, the company sold long-term investments for $26 that had cost $13 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $75 of its own stock. This year Weaver did not retire any bonds. Required: 1. Using the direct method, adjust the company's income statement for this year to a cash basis. 2. Using the information obtained in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for this year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using the direct method, adjust the company's income statement for this year to a cash basis. (Adjustment amounts that are to be deducted should be indicated with a minus sign.) Weaver Company Direct Method of Determining the Net Cash flows from Operating activities Adjustments to a cash basis: Adjustments to a cash basis: Selling and administrative expenses Adjustments to a cash basis: Income taxes Adjustments to a cash basis: 0 0 0 0 $ < Required 1 Required 2 >
Expert Answer:
Answer rating: 100% (QA)
Required 1 Using the direct method adjust the companys income statement for this year to a cash basi... View the full answer
Related Book For
Managerial Accounting
ISBN: 9781260247787
17th Edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
Students also viewed these accounting questions
-
In 2023, Mini reports $800,000 of pretax book net income. Mini did not recognize any bad debt expense for book purposes in 2023 but did deduct $15,000 in bad debt expense for tax purposes. Mini...
-
the following questions based on the article: 1. after reading the article what are your thoughts on budgeting? what was the most compelling argument for creating a budget? why?The importance of...
-
What are the uses of the chi-square test in terms of data analysis for quality, safety, and patient safety? I also need two specific examples of when a HIM professional would use chi-square and why.
-
The IQ and VIQ are tools insurance producers use to learn more about internal assumptions regarding factors that ultimately control policy performance. They have information in all of the following...
-
Suppose that there are 1,000 consumers in the economy, each one with $10 of income. There are only two goods in the economy, X and Y. The price of good X is P and the price of good Y is $1. One group...
-
After deciding to incorporate, each of the three investors receives 20,000 shares of $2 par common stock on June 12, 2009, in exchange for their co-owned building ($200,000 market value) and $100,000...
-
You want to buy a car costing $20,000 and make loan payments over five years at 10% interest per year. You must solve for the amount of the payments. In doing so, the amount of $20,000 represents a....
-
Journal entries (continuation of 8-29) Required 1. Prepare journal entries for variable and fixed manufacturing overhead (you will need to calculate the various variances to accomplish this). 2....
-
When using the modified approach to account for infrastructures, expenditures to extend the life of the infrastructure assets are: Multiple Choice Expensed. Capitalized. Neither of the choices is...
-
eBook Recording Petty Cash Fund Transactions Illustrate the effect on the accounts and financial statements of the following transactions. If no account or activity is affected, select "No effect"...
-
Your friend Jose is trying to decide whether to buy or lease his next vehicle. He has gathered information about each option but is not sure how to compare the alternatives. Purchasing a new vehicle...
-
In general, how adequate is the law in terms of being able to prosecute someone who undertakes computer abuse?
-
Should we be any more concerned about computer fraud and embezzlement versus other forms of business fraud and embezzlement?
-
How can inadequate controls in a computer system lead to incorrect decision making?
-
What are the implications of a company losing its: a. Personnel master file b. Inventory master file
-
Break Even Analysis For Eye Care Business For this part of the assignment, we are going to try to predict when your business will break even. Just as in the Startup Expenses and Opening Day Balance...
-
Fill in each blank so that the resulting statement is true. A solution to a system of linear equations in two variables is an ordered pair that__________ .
-
What are the two types of auditors? Briefly define them.
-
How does Philip Wallages view of the audit process compare the empirical scientific cycle to the financial audit process?
-
What are the five components of internal control? Give a sentence on each.
Study smarter with the SolutionInn App