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 and cash equivalents | $ | 4 | $ | 11 | ||||
Accounts receivable | 294 | 229 | ||||||
Inventory | 158 | 194 | ||||||
Prepaid expenses | 8 | 6 | ||||||
Total current assets | 464 | 440 | ||||||
Property, plant, and equipment | 512 | 432 | ||||||
Less accumulated depreciation | (82 | ) | (71 | ) | ||||
Net property, plant, and equipment | 430 | 361 | ||||||
Long-term investments | 27 | 34 | ||||||
Total assets | $ | 921 | $ | 835 | ||||
Liabilities and Stockholders' Equity | ||||||||
Accounts payable | $ | 300 | $ | 225 | ||||
Accrued liabilities | 72 | 80 | ||||||
Income taxes payable | 74 | 63 | ||||||
Total current liabilities | 446 | 368 | ||||||
Bonds payable | 197 | 171 | ||||||
Total liabilities | 643 | 539 | ||||||
Common stock | 161 | 201 | ||||||
Retained earnings | 117 | 95 | ||||||
Total stockholders equity | 278 | 296 | ||||||
Total liabilities and stockholders' equity | $ | 921 | $ | 835 | ||||
|
Weaver Company Income Statement For This Year Ended December 31 | ||||||
Sales | $ | 752 | ||||
Cost of goods sold | 450 | |||||
Gross margin | 302 | |||||
Selling and administrative expenses | 220 | |||||
Net operating income | 82 | |||||
Nonoperating items: | ||||||
Gain on sale of investments | $ | 6 | ||||
Loss on sale of equipment | (2 | ) | 4 | |||
Income before taxes | 86 | |||||
Income taxes | 24 | |||||
Net income | $ | 62 | ||||
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 $7 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $40 of its own stock. This year Weaver did not retire any bonds.
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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