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	$ 7	$ 13
Accounts receivable	295	229
Inventory	153	195
Prepaid expenses	9	5
Total current assets	464	442
Property, plant, and equipment	511	431
Less accumulated depreciation	(80)	(72)
Net property, plant, and equipment	431	359
Long-term investments	26	33
Total assets	$ 921	$ 834
Liabilities and Stockholders' Equity
Accounts payable	$ 302	$ 225
Accrued liabilities	71	78
Income taxes payable	73	65
Total current liabilities	446	368
Bonds payable	198	170
Total liabilities	644	538
Common stock	161	202
Retained earnings	116	94
Total stockholders equity	277	296
Total liabilities and stockholders' equity	$ 921	$ 834

Weaver Company Income Statement For This Year Ended December 31
Sales		$ 751
Cost of goods sold		449
Gross margin		302
Selling and administrative expenses		221
Net operating income		81
Nonoperating items:
Gain on sale of investments	$ 6
Loss on sale of equipment	(1)	5
Income before taxes		86
Income taxes		23
Net income		$ 63

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 $7 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $41 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.)