Question
Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet December 31, 2015 and 2014 2015 2014 Assets Cash $ 14 $ 11
Comparative financial statements for Weaver Company follow:
Weaver Company Comparative Balance Sheet December 31, 2015 and 2014 | ||||
2015 | 2014 | |||
Assets | ||||
Cash | $ | 14 | $ | 11 |
Accounts receivable | 306 | 231 | ||
Inventory | 157 | 194 | ||
Prepaid expenses | 8 | 6 | ||
Total current assets | 485 | 442 | ||
Property, plant, and equipment | 506 | 427 | ||
Less accumulated depreciation | (86) | (71) | ||
Net property, plant, and equipment | 420 | 356 | ||
Long-term investments | 28 | 34 | ||
Total assets | $ | 933 | $ | 832 |
Liabilities and Stockholders' Equity | ||||
Accounts payable | $ | 305 | $ | 224 |
Accrued liabilities | 71 | 78 | ||
Income taxes payable | 74 | 65 | ||
Total current liabilities | 450 | 367 | ||
Bonds payable | 199 | 170 | ||
Total liabilities | 649 | 537 | ||
Common stock | 161 | 201 | ||
Retained earnings | 123 | 94 | ||
Total stockholders equity | 284 | 295 | ||
Total liabilities and stockholders' equity | $ | 933 | $ | 832 |
Weaver Company Income Statement For the Year Ended December 31, 2015 | ||||
Sales | $ | 754 | ||
Cost of goods sold | 446 | |||
Gross margin | 308 | |||
Selling and administrative expenses | 220 | |||
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Net operating income | 88 | |||
Nonoperating items: | ||||
Gain on sale of investments | $ | 7 | ||
Loss on sale of equipment | (2) | 5 | ||
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Income before taxes | 93 | |||
Income taxes | 24 | |||
Net income | $ | 69 | ||
During 2015, 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 $13 that had cost $6 when purchased several years ago. A cash dividend was paid during 2015 and the company repurchased $40 of its own stock. Weaver did not retire any bonds during 2015.
Part 1
Required: | |
1. | Using the indirect method, determine the net cash provided by/used by operating activities for 2015. (Negative amount should be entered with a minus sign.) |
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