Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Required information [The following information applies to the questions displayed below.] Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at
Required information [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 Last Year Year Total current assets Assets Cash Accounts receivable Inventory Prepaid expenses Property, plant, and equipment $ 28 $ 12 293 229 151 194 8 6 480 441 513 433 Less accumulated depreciation (81) (70) Net property, plant, and equipment Long-term investments 432 363 28 34 Total assets $ 940 $838 Liabilities and Stockholders' Equity Accounts payable $ 304 $225 Accrued liabilities 71 79 Income taxes payable 73 65 Total current liabilities 448 369 Bonds payable 198 171 Total liabilities 646 540 Common stock 165 201 Retained earnings 129 97 Total stockholders' equity 294 298 Total liabilities and stockholders' equity $ 940 $838 Weaver Company Income Statement For This Year Ended December 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes Net income $755 446 309 221 88 $ 7 (2) 5 93 25 $ 68 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 $13 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. 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: 0 Financing activities: 0 0 Beginning cash and cash equivalents Ending cash and cash equivalents $ 0
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started