Question
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 | 310 | 230 | ||||||
Inventory | 156 | 194 | ||||||
Prepaid expenses | 9 | 5 | ||||||
Total current assets | 468 | 440 | ||||||
Property, plant, and equipment | 510 | 431 | ||||||
Less accumulated depreciation | (85 | ) | (70 | ) | ||||
Net property, plant, and equipment | 425 | 361 | ||||||
Long-term investments | 28 | 35 | ||||||
Total assets | $ | 921 | $ | 836 | ||||
Liabilities and Stockholders' Equity | ||||||||
Accounts payable | $ | 304 | $ | 226 | ||||
Accrued liabilities | 72 | 80 | ||||||
Income taxes payable | 74 | 64 | ||||||
Total current liabilities | 450 | 370 | ||||||
Bonds payable | 199 | 170 | ||||||
Total liabilities | 649 | 540 | ||||||
Common stock | 160 | 202 | ||||||
Retained earnings | 112 | 94 | ||||||
Total stockholders equity | 272 | 296 | ||||||
Total liabilities and stockholders' equity | $ | 921 | $ | 836 | ||||
Weaver Company Income Statement For This Year Ended December 31 | ||||||
Sales | $ | 750 | ||||
Cost of goods sold | 447 | |||||
Gross margin | 303 | |||||
Selling and administrative expenses | 222 | |||||
Net operating income | 81 | |||||
Nonoperating items: | ||||||
Gain on sale of investments | $ | 5 | ||||
Loss on sale of equipment | (1 | ) | 4 | |||
Income before taxes | 85 | |||||
Income taxes | 25 | |||||
Net income | $ | 60 | ||||
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 $7 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $42 of its own stock. This year Weaver did not retire any bonds.
2. Using the information in (1) above, 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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