Problem 13-7 Prepare a Statement of Cash Flows [LO13-1, LO13-2]

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Comparative financial statements for Weaver Company follow:

Weaver Company Comparative Balance Sheet at December 31
	This Year				Last Year
Assets
Cash and cash equivalents	$	5			$	13
Accounts receivable		294				228
Inventory		160				196
Prepaid expenses		9				6
Total current assets		468				443
Property, plant, and equipment		511				432
Less accumulated depreciation		(83	)			(71	)
Net property, plant, and equipment		428				361
Long-term investments		25				31
Total assets	$	921			$	835
Liabilities and Stockholders' Equity
Accounts payable	$	302			$	225
Accrued liabilities		71				80
Income taxes payable		74				64
Total current liabilities		447				369
Bonds payable		197				171
Total liabilities		644				540
Common stock		161				201
Retained earnings		116				94
Total stockholders equity		277				295
Total liabilities and stockholders' equity	$	921			$	835

Weaver Company Income Statement For This Year Ended December 31
Sales					$	751
Cost of goods sold						449
Gross margin						302
Selling and administrative expenses						221
Net operating income						81
Nonoperating items:
Gain on sale of investments	$	7
Loss on sale of equipment		(2	)			5
Income before taxes						86
Income taxes						24
Net income					$	62

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 $13 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.