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 | $ -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.)
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
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