Problem 15-7 (Algo) Prepare a Statement of Cash Flows (LO15-1, LO15-2] [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 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 $ 16 294 153 9 472 505 (81) 424 27 $ 923 $ 13 230 195 6 444 426 (72) 354 33 $ 831 $ 301 70 75 446 197 643 162 118 280 $ 923 $ 226 78 63 367 170 537 201 93 294 $ 831 Weaver Company Income Statement For This Year Ended December 31 Sales Cost of goods sold Girnes margin $ 754 447 207 447 223 Weaver Company Income Statement For This Year Ended December 31 Sales $ 754 Cost of goods solo Gross margin 307 Selling and administrative expenses Net operating income 84 Nonoperating itens: Gain on sale of investments $6 Loss on sale of equipment (2) Incore before taxes Income taxes 24 Net income 5 64 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 $39 of its own stock. This year Weaver did not retire any bonds 4 BH 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 0 Financing activities 0 0 Beginning cash and cash equivalents Ending cash and cash equivalents S 0 $ 64 > Weaver Company Statement of Cash Flows-Indirect Method (partial) Net income Adjustments to convert net income to a cash basis: Decrease in accrued liabilities Depreciation Increase in prepaid expenses Loss on sale of equipment Increase in accounts payable Increase in accounts receivable Increase in income taxes payable Decrease in inventory $754 447 307 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: Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes Net income 223 84 5.6 (2) 4 BB 24 $ 64 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 $39 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.) $ 54 Weaver Company Statement of Cash Flowi-Indirect Method (partial) Net Income Adjustments to convert net income to a cash basis Decrease in accrued liabilities Depreciation incinin