Required information

Skip to question

$[$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 and cash equivalents $ $-25$ $ $11$

Accounts receivable $338230$

Inventory $153195$

Prepaid expenses $95$

Total current assets $475441$

Property, plant, and equipment $507428$

Less accumulated depreciation $8371$

Net property, plant, and equipment $424357$

Long$-$term investments $2734$

Total assets $ $926$ $ $832$

Liabilities and Stockholders' Equity

Accounts payable $ $301$ $ $224$

Accrued liabilities $7179$

Income taxes payable $7564$

Total current liabilities $447367$

Bonds payable $195171$

Total liabilities $642538$

Common stock $164202$

Retained earnings $12092$

Total stockholders$$ equity $284294$

Total liabilities and stockholders' equity $ $926$ $ $832$

Weaver Company

Income Statement

For This Year Ended December $31$

Sales $ $755$

Cost of goods sold $448$

Gross margin $307$

Selling and administrative expenses $222$

Net operating income $85$

Nonoperating items:

Gain on sale of investments $ $5$

Loss on sale of equipment $(2)3$

Income before taxes $88$

Income taxes $22$

Net income $ $66$

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 $$7$ when purchased several years ago. Weaver paid a cash dividend and repurchased $$38$ of its own stock but did not retire any bonds.

$2.$ Prepare a statement of cash flows for this year.

Note: Cash outflows and amounts to be deducted should be indicated with a minus sign.