Question
Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash $ 32 $ 11
Comparative financial statements for Weaver Company follow:
Weaver Company Comparative Balance Sheet at December 31 | ||
This Year | Last Year | |
---|---|---|
Assets | ||
Cash | $ 32 | $ 11 |
Accounts receivable | 293 | 231 |
Inventory | 151 | 195 |
Prepaid expenses | 8 | 6 |
Total current assets | 484 | 443 |
Property, plant, and equipment | 509 | 430 |
Less accumulated depreciation | (82) | (72) |
Net property, plant, and equipment | 427 | 358 |
Long-term investments | 25 | 32 |
Total assets | $ 936 | $ 833 |
Liabilities and Stockholders' Equity | ||
Accounts payable | $ 303 | $ 224 |
Accrued liabilities | 73 | 77 |
Income taxes payable | 74 | 64 |
Total current liabilities | 450 | 365 |
Bonds payable | 199 | 172 |
Total liabilities | 649 | 537 |
Common stock | 164 | 200 |
Retained earnings | 123 | 96 |
Total stockholders equity | 287 | 296 |
Total liabilities and stockholders' equity | $ 936 | $ 833 |
Weaver Company Income Statement For This Year Ended December 31 | ||
Sales | $ 752 | |
---|---|---|
Cost of goods sold | 450 | |
Gross margin | 302 | |
Selling and administrative expenses | 221 | |
Net operating income | 81 | |
Nonoperating items: | ||
Gain on sale of investments | $ 6 | |
Loss on sale of equipment | (1) | 5 |
Income before taxes | 86 | |
Income taxes | 23 | |
Net income | $ 63 |
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 $13 that had cost $7 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $36 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. (List any deduction in cash and cash outflows as negative amounts.)
Weaver Company Statement of Cash Flows-Indirect Method (partial) $ 0 0
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