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	$ 21	$ 12
Accounts receivable	293	230
Inventory	152	195
Prepaid expenses	8	6
Total current assets	474	443
Property, plant, and equipment	513	434
Less accumulated depreciation	(81)	(72)
Net property, plant, and equipment	432	362
Long-term investments	27	34
Total assets	$ 933	$ 839
Liabilities and Stockholders' Equity
Accounts payable	$ 304	$ 226
Accrued liabilities	73	79
Income taxes payable	74	65
Total current liabilities	451	370
Bonds payable	196	171
Total liabilities	647	541
Common stock	163	201
Retained earnings	123	97
Total stockholders equity	286	298
Total liabilities and stockholders' equity	$ 933	$ 839

Weaver Company Income Statement For This Year Ended December 31
Sales		$ 754
Cost of goods sold		447
Gross margin		307
Selling and administrative expenses		221
Net operating income		86
Nonoperating items:
Gain on sale of investments	$ 5
Loss on sale of equipment	(2)	3
Income before taxes		89
Income taxes		25
Net income		$ 64

During this year, Weaver sold some equipment for $19 that had cost $31 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 this year and the company repurchased $38 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.)