Question
at December Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets $ 13 Property, plant, and equipment Less accumulated depreciation Net property, plant,
at December Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets $ 13 Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Long-term investments Total assets Liabilities and Stockholders' Equity Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Weaver Company Income Statement For This Year Ended December 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 31 31 (3) This Year 4 370 125 4 503 570 80 490 23 $1,016 280 40 73 393 245 638 225 153 378 $1,016 $ 760 430 330 210 120 10 130 39 $ 91 Last Year 16 260 180 2 458 460 70 390 36 884 230 50 66 346 160 506 300 78 378 884 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.
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