Problem 13-7 (Algo) Prepare a Statement of Cash Flows [LO13-1, LO13-2] [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 Less accumulated depreciation Net property, plant, and equipment Long-term investments Total assets $ -13 333 152 $ 12 230 195 8 5 480 442 503 425 80 70 423 355 28 34 $ 931 $ 831 Liabilities and Stockholders' Equity Accounts payable $ 304 $ 225 Accrued liabilities 72 78 Income taxes payable 72 64 Total current liabilities 448 367 Bonds payable 200 171 Total liabilities 648 538 Common stock 161 201 Retained earnings 122 92 Total stockholders' equity 283 293 Total liabilities and stockholders' equity $ 931 $ 831 Weaver Company Income Statement For This Year Ended December 31 Sales $ 755 Cost of goods sold 446 Gross margin 309 Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of investments 220 89 $ 6 Loss on sale of equipment (2) 4 Income before taxes Income taxes 93 23 Net income $ 70 During this year, 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 $12 that had cost $6 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $40 of its own stock. This year Weaver did not retire any bonds. Problem 13-7 Part 1 (Algo) 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 Problem 13-7 (Algo) Prepare a Statement of Cash Flows [LO13-1, LO13-2] [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 Less accumulated depreciation $ -13 $ 12 333 230 152 195 8 5 480 442 503 425 80 70 Net property, plant, and equipment Long-term investments 423 355 28 34 Total assets $ 931 $ 831 Liabilities and Stockholders' Equity Accounts payable $ 304 $ 225 Accrued liabilities 72 78 Income taxes payable 72 64 Total current liabilities 448 367 Bonds payable 200 171 Total liabilities 648 538 Common stock 161 201 Retained earnings 122 92 Total stockholders' equity 283 293 Total liabilities and stockholders' equity $ 931 $ 831 Weaver Company Income Statement For This Year Ended December 31 Sales $ 755 Cost of goods sold 446 Gross margin 309 Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of investments 220 89 $ 6 Loss on sale of equipment (2) 4 Income before taxes Income taxes 93 23 Net income $ 70 During this year, 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 $12 that had cost $6 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $40 of its own stock. This year Weaver did not retire any bonds. Problem 13-7 Part 2 (Algo) 2. Using the information from Part 1, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows 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