Part 1 & 2
The following information applies to the questions displayed below. Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment $ 12 228 196 310 155 441 430 72 358 31 $830 477 509 Less accumulated depreciation Net property, plant, and equipment Long-term investments Total assets 424 25 S 926 Liabilities and Stockholders' Equity Accounts payable Accrued liabilities Income taxes payable Total current 1iabilities Bonds payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 301 72 71 $224 64 365 197 641 163 122 285 926 536 201 93 294 $830 Weaver Company Income Statement For This Year Ended December 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: 752 445 307 85 Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes Net income (2 _4 89 S 67 Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment $ 12 228 196 310 155 441 430 72 358 31 $830 477 509 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 424 25 S 926 301 72 71 $224 64 365 197 641 163 122 285 $ 926 536 201 93 294 $830 Weaver Company Income Statement For This Year Ended December 31 $ 752 445 307 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: 85 Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes Net income (2 _4 89 $ 67 During this year, Weaver sold some equipment for $18 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 $6 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $38 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 lows for this year. (List any deduction in cash and cash outflows as negative amounts. Weaver Company Statement of Cash Flows For This Year Ended December 31 Operating activities: Investing activities: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents
