Required information Problem 14-7 Prepare a Statement of Cash Flows (L014-1, L014-2) [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 tant Tear #11 10 293 155 155 475 506 1923 424 420 (701 350 31 $ Acounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Les accumulated depreciation Net property, plant, and equipment Long-term investments Total asset Liabilities and stockholders Equity Accounts payable Accrued abilities Income taxes payable Total current liabilities Bonde payable Total liabilities Common stock Retained earning Total stockholders' equity Total liabilities and stockholders' equity $225 73 72 49 199 366 221 162 110 280 $930 200 32 292 3829 $752 450 302 Weaver Company TECO atenent For This Year Toded December 31 Sales Cont of good old Gross margin Selling and administrative expenses Het operating income Nonoperating Items Gain on sale of investments Lous on sale of equipment Income before taxe Income taxes Net income 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 $38 of its own stock. This year Weaver did not retire any bonds. Problem 14-7 Part 1 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.) Weaver Company Statement of Cash Flows-Indirect Method (partial Problem 14.7 Part 2 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 Financing activities Beginning cash and cash equivalents Ending cash and cash equivalents 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 $ 18 293 159 9 479 506 (82) 424 25 $ 928 $ 11 229 195 5 440 428 (70) 358 31 $829 $ 304 73 72 449 199 $225 78 63 366 171 537 200 92 292 $829 162 118 280 $ 928 Weaver Company Income Statement For This Year Ended December 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Honoperating items Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes Net Income $752 450 302 219 83 (2) 87 2 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 $38 of its own stock. This year Weaver did not retire any bonds
