Required information Problem 13-7 (Algo) Prepare a Statement of Cash Flows [LO13-1, LO13-2] [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 $ 20 $ 11 295 231 152 196 8 6 475 444 509 429 (80) (72) Net property, plant, and equipment Long-term investments 429 357 25 31 Total assets $ 929 $ 832 Liabilities and Stockholders' Equity Accounts payable $ 302 $224 Accrued liabilities 72 77 Income taxes payable 71 64 Total current liabilities 445 365 Bonds payable 197 172 Total liabilities 642 537 Common stock 162 201 Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 125 94 287 295 $ 929 $ 832 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 $ 755 448 307 219 88 $7 (1) 6 94 24 $ 70 During this year, 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 $13 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. 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: Net cash provided by operating activities Investing activities: Gain on sale of equipment Gain on sale of investments Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents 0 0 0 $ 0