Question
Need help please. Problem 12-7A Prepare a Statement of Cash Flows [LO12-1, LO12-2] [The following information applies to the questions displayed below.] Comparative financial statements
Need help please.
Problem 12-7A Prepare a Statement of Cash Flows [LO12-1, LO12-2]
[The following information applies to the questions displayed below.]
Comparative financial statements for Weaver Company follow: |
Weaver Company Comparative Balance Sheet December 31, 2015 and 2014 | ||||
2015 | 2014 | |||
Assets | ||||
Cash | $ | 7 | $ | 11 |
Accounts receivable | 308 | 230 | ||
Inventory | 160 | 194 | ||
Prepaid expenses | 9 | 5 | ||
Total current assets | 484 | 440 | ||
Property, plant, and equipment | 514 | 434 | ||
Less accumulated depreciation | (85) | (71) | ||
Net property, plant, and equipment | 429 | 363 | ||
Long-term investments | 23 | 30 | ||
Total assets | $ | 936 | $ | 833 |
Liabilities and Stockholders' Equity | ||||
Accounts payable | $ | 301 | $ | 225 |
Accrued liabilities | 72 | 79 | ||
Income taxes payable | 74 | 64 | ||
Total current liabilities | 447 | 368 | ||
Bonds payable | 197 | 170 | ||
Total liabilities | 644 | 538 | ||
Common stock | 165 | 202 | ||
Retained earnings | 127 | 93 | ||
Total stockholders equity | 292 | 295 | ||
Total liabilities and stockholders' equity | $ | 936 | $ | 833 |
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 | 218 | |||
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Net operating income | 90 | |||
Nonoperating items: | ||||
Gain on sale of investments | $ | 6 | ||
Loss on sale of equipment | (1) | 5 | ||
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Income before taxes | 95 | |||
Income taxes | 24 | |||
Net income | $ | 71 | ||
During 2015, 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. A cash dividend was paid during 2015 and the company repurchased $37 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.) |
Part 2
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