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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 $ -2 $ 11
Comparative financial statements for Weaver Company follow:
Weaver Company Comparative Balance Sheet at December 31 | ||||||||
This Year | Last Year | |||||||
Assets | ||||||||
Cash | $ | -2 | $ | 11 | ||||
Accounts receivable | 306 | 230 | ||||||
Inventory | 160 | 194 | ||||||
Prepaid expenses | 8 | 6 | ||||||
Total current assets | 472 | 441 | ||||||
Property, plant, and equipment | 507 | 427 | ||||||
Less accumulated depreciation | (85 | ) | (70 | ) | ||||
Net property, plant, and equipment | 422 | 357 | ||||||
Long-term investments | 29 | 35 | ||||||
Total assets | $ | 923 | $ | 833 | ||||
Liabilities and Stockholders' Equity | ||||||||
Accounts payable | $ | 303 | $ | 225 | ||||
Accrued liabilities | 71 | 77 | ||||||
Income taxes payable | 73 | 64 | ||||||
Total current liabilities | 447 | 366 | ||||||
Bonds payable | 196 | 172 | ||||||
Total liabilities | 643 | 538 | ||||||
Common stock | 160 | 200 | ||||||
Retained earnings | 120 | 95 | ||||||
Total stockholders equity | 280 | 295 | ||||||
Total liabilities and stockholders' equity | $ | 923 | $ | 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 | 219 | |||||
Net operating income | 83 | |||||
Nonoperating items: | ||||||
Gain on sale of investments | $ | 6 | ||||
Loss on sale of equipment | (1 | ) | 5 | |||
Income before taxes | 88 | |||||
Income taxes | 23 | |||||
Net income | $ | 65 | ||||
During this year, Weaver sold some equipment for $19 that had cost $30 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 $40 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.
Weaver Company Statement of Cash Flows-Indirect Method (partial)
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