Problem 15-7 (Algo) Prepare a Statement of Cash Flows [LO15-1, LO15-2]

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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	$	22			$	12
Accounts receivable		295				229
Inventory		151				194
Prepaid expenses		8				5
Total current assets		476				440
Property, plant, and equipment		511				432
Less accumulated depreciation		(81	)			(71	)
Net property, plant, and equipment		430				361
Long-term investments		27				33
Total assets	$	933			$	834
Liabilities and Stockholders' Equity
Accounts payable	$	303			$	226
Accrued liabilities		71				80
Income taxes payable		72				65
Total current liabilities		446				371
Bonds payable		200				170
Total liabilities		646				541
Common stock		164				200
Retained earnings		123				93
Total stockholders equity		287				293
Total liabilities and stockholders' equity	$	933			$	834

Weaver Company Income Statement For This Year Ended December 31
Sales					$	751
Cost of goods sold						447
Gross margin						304
Selling and administrative expenses						219
Net operating income						85
Nonoperating items:
Gain on sale of investments	$	7
Loss on sale of equipment		(2	)			5
Income before taxes						90
Income taxes						24
Net income					$	66

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 $36 of its own stock. This year Weaver did not retire any bonds.

Problem 15-7 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.)