Question
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
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 Year | Last Year | |||||||
Assets | ||||||||
Cash | $ | 2 | $ | 12 | ||||
Accounts receivable | 308 | 230 | ||||||
Inventory | 157 | 194 | ||||||
Prepaid expenses | 9 | 5 | ||||||
Total current assets | 476 | 441 | ||||||
Property, plant, and equipment | 514 | 436 | ||||||
Less accumulated depreciation | (86 | ) | (72 | ) | ||||
Net property, plant, and equipment | 428 | 364 | ||||||
Long-term investments | 26 | 32 | ||||||
Total assets | $ | 930 | $ | 837 | ||||
Liabilities and Stockholders' Equity | ||||||||
Accounts payable | $ | 302 | $ | 225 | ||||
Accrued liabilities | 73 | 77 | ||||||
Income taxes payable | 71 | 65 | ||||||
Total current liabilities | 446 | 367 | ||||||
Bonds payable | 195 | 172 | ||||||
Total liabilities | 641 | 539 | ||||||
Common stock | 162 | 201 | ||||||
Retained earnings | 127 | 97 | ||||||
Total stockholders equity | 289 | 298 | ||||||
Total liabilities and stockholders' equity | $ | 930 | $ | 837 | ||||
Weaver Company Income Statement For This Year Ended December 31 | ||||||
Sales | $ | 753 | ||||
Cost of goods sold | 445 | |||||
Gross margin | 308 | |||||
Selling and administrative expenses | 222 | |||||
Net operating income | 86 | |||||
Nonoperating items: | ||||||
Gain on sale of investments | $ | 7 | ||||
Loss on sale of equipment | (1 | ) | 6 | |||
Income before taxes | 92 | |||||
Income taxes | 23 | |||||
Net income | $ | 69 | ||||
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 $6 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $39 of its own stock. This year Weaver did not retire any bonds.
Required
2. Using the information in (1) above, 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.)
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