Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

[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 $ 25 $ 11
Accounts receivable 291 230
Inventory 151 194
Prepaid expenses 8 5
Total current assets 475 440
Property, plant, and equipment 510 431
Less accumulated depreciation (83) (70)
Net property, plant, and equipment 427 361
Long-term investments 28 34
Total assets $ 930 $ 835
Liabilities and Stockholders' Equity
Accounts payable $ 302 $ 226
Accrued liabilities 72 79
Income taxes payable 71 63
Total current liabilities 445 368
Bonds payable 200 171
Total liabilities 645 539
Common stock 163 202
Retained earnings 122 94
Total stockholders equity 285 296
Total liabilities and stockholders' equity $ 930 $ 835

Weaver Company Income Statement For This Year Ended December 31
Sales $ 754
Cost of goods sold 448
Gross margin 306
Selling and administrative expenses 220
Net operating income 86
Nonoperating items:
Gain on sale of investments $ 6
Loss on sale of equipment (2) 4
Income before taxes 90
Income taxes 23
Net income $ 67

During this year, Weaver sold some equipment for $18 that had cost $30 and on which there was accumulated depreciation of $10. In addition, the company sold long-term investments for $12 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:

1. Using the indirect method, determine the net cash provided by/used in operating activities for this year.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting for Managers

Authors: Eric Noreen, Peter Brewer, Ray Garrison

2nd edition

978-0077403485, 77403487, 73527130, 978-0073527130

More Books

Students also viewed these Accounting questions

Question

Log off from the client computer. LO.1

Answered: 1 week ago

Question

How is use of the word consistent helpful in fraud reports?

Answered: 1 week ago