Question 37 & 38:

Comparative financial statements for Weaver Company follow:

Weaver Company Comparative Balance Sheet December 31, 2015 and 2014
	2015		2014
Assets
Cash	$	5	$	11
Accounts receivable		306		231
Inventory		156		195
Prepaid expenses		9		6
Total current assets		476		443
Property, plant, and equipment		512		433
Less accumulated depreciation		(85)		(72)
Net property, plant, and equipment		427		361
Long-term investments		26		33
Total assets	$	929	$	837
Liabilities and Stockholders' Equity
Accounts payable	$	303	$	225
Accrued liabilities		73		79
Income taxes payable		73		65
Total current liabilities		449		369
Bonds payable		196		172
Total liabilities		645		541
Common stock		162		201
Retained earnings		122		95
Total stockholders equity		284		296
Total liabilities and stockholders' equity	$	929	$	837

Weaver Company Income Statement For the Year Ended December 31, 2015
Sales			$	754
Cost of goods sold				450
Gross margin				304
Selling and administrative expenses				219
Net operating income				85
Nonoperating items:
Gain on sale of investments	$	5
Loss on sale of equipment		(1)		4
Income before taxes				89
Income taxes				23
Net income			$	66

During 2015, Weaver sold some equipment for $19 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 $7 when purchased several years ago. A cash dividend was paid during 2015 and the company repurchased $39 of its own stock. Weaver did not retire any bonds during 2015.

References

Section BreakProblem 12-7A Prepare a Statement of Cash Flows [LO12-1, LO12-2]

37.

value: 5.00 points

Required information

Part 1

Required:
1.	Using the indirect method, determine the net cash provided by/used by operating activities for 2015. (Negative amount should be entered with a minus sign.)

References

eBook & Resources

WorksheetDifficulty: 2 MediumLearning Objective: 12-02 Prepare a statement of cash flows using the indirect method to determine the net cash provided by operating activities.

Part 1Learning Objective: 12-01 Classify cash inflows and outflows as relating to operating, investing, or financing activities.

38.

value: 5.00 points

Required information

Part 2

2.	Using the information in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for 2015. (List any deduction in cash and cash outflows as negative amounts.)