Question
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
Required information
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[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 | $ 26 | $ 12 |
Accounts receivable | 293 | 230 |
Inventory | 153 | 196 |
Prepaid expenses | 8 | 5 |
Total current assets | 480 | 443 |
Property, plant, and equipment | 508 | 429 |
Less accumulated depreciation | (82) | (70) |
Net property, plant, and equipment | 426 | 359 |
Long-term investments | 28 | 34 |
Total assets | $ 934 | $ 836 |
Liabilities and Stockholders' Equity | ||
Accounts payable | $ 302 | $ 224 |
Accrued liabilities | 72 | 80 |
Income taxes payable | 74 | 64 |
Total current liabilities | 448 | 368 |
Bonds payable | 197 | 172 |
Total liabilities | 645 | 540 |
Common stock | 165 | 201 |
Retained earnings | 124 | 95 |
Total stockholders equity | 289 | 296 |
Total liabilities and stockholders' equity | $ 934 | $ 836 |
Weaver Company Income Statement For This Year Ended December 31 | ||
Sales | $ 753 | |
---|---|---|
Cost of goods sold | 447 | |
Gross margin | 306 | |
Selling and administrative expenses | 222 | |
Net operating income | 84 | |
Nonoperating items: | ||
Gain on sale of investments | $ 6 | |
Loss on sale of equipment | (2) | 4 |
Income before taxes | 88 | |
Income taxes | 23 | |
Net income | $ 65 |
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 $6 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $36 of its own stock. This year Weaver did not retire any bonds.
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.)
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