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
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 | $ -14 | $ 12 |
Accounts receivable | 336 | 231 |
Inventory | 151 | 195 |
Prepaid expenses | 8 | 6 |
Total current assets | 481 | 444 |
Property, plant, and equipment | 511 | 431 |
Less accumulated depreciation | 81 | 70 |
Net property, plant, and equipment | 430 | 361 |
Long-term investments | 25 | 31 |
Total assets | $ 936 | $ 836 |
Liabilities and Stockholders' Equity | ||
Accounts payable | $ 300 | $ 225 |
Accrued liabilities | 72 | 79 |
Income taxes payable | 74 | 63 |
Total current liabilities | 446 | 367 |
Bonds payable | 198 | 171 |
Total liabilities | 644 | 538 |
Common stock | 165 | 202 |
Retained earnings | 127 | 96 |
Total stockholders equity | 292 | 298 |
Total liabilities and stockholders' equity | $ 936 | $ 836 |
Weaver Company Income Statement For This Year Ended December 31 | ||
---|---|---|
Sales | $ 751 | |
Cost of goods sold | 445 | |
Gross margin | 306 | |
Selling and administrative expenses | 219 | |
Net operating income | 87 | |
Nonoperating items: | ||
Gain on sale of investments | $ 7 | |
Loss on sale of equipment | (2) | 5 |
Income before taxes | 92 | |
Income taxes | 24 | |
Net income | $ 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 $37 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.)
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