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 $ -19 $ 12
Accounts receivable 338 229
Inventory 152 194
Prepaid expenses 9 6
Total current assets 480 441
Property, plant, and equipment 507 429
Less accumulated depreciation 80 70
Net property, plant, and equipment 427 359
Long-term investments 26 32
Total assets $ 933 $ 832
Liabilities and Stockholders' Equity
Accounts payable $ 303 $ 226
Accrued liabilities 71 79
Income taxes payable 73 64
Total current liabilities 447 369
Bonds payable 199 171
Total liabilities 646 540
Common stock 162 200
Retained earnings 125 92
Total stockholders equity 287 292
Total liabilities and stockholders' equity $ 933 $ 832

Weaver Company Income Statement For This Year Ended December 31
Sales $ 754
Cost of goods sold 447
Gross margin 307
Selling and administrative expenses 219
Net operating income 88
Nonoperating items:
Gain on sale of investments $ 7
Loss on sale of equipment (1) 6
Income before taxes 94
Income taxes 23
Net income $ 71

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 $38 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. (List any deduction in cash and cash outflows as negative amounts.)

image text in transcribed Weaver Company Statement of Cash Flows_-Indirect Method (partial) \begin{tabular}{|l|l|l|} \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular}

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

Studies Of Company Records (RLE Accounting)1830-1974

Authors: J. R. Edwards

1st Edition

1138983306, 9781138983304

More Books

Students also viewed these Accounting questions

Question

Explain the use of the employment interview.

Answered: 1 week ago

Question

Identify environmental factors that affect the selection process.

Answered: 1 week ago