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 | $ 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.
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