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Problem 13-7 Prepare a Statement of Cash Flows [LO13-1, LO13-2] Skip to question [The following information applies to the questions displayed below.] Comparative financial statements

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

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[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 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.

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