V. Cash Flow Solve the Weimer Cash Flow Problem below. Use the Excel Worksheet approach (but do it by hand). Include conversion to the direct method for cash from operations. Attach Solution to your Pre-Exam. Weimer LTD Co. A. Comparative balance sheets for 2017 and 2016 and an income statement for 2017 are provided below for Weimer LED Corp Additional information from the accounting records of D Weimer LTD Corp. also is provided Assets: Cash Accounts receivable Allowance for bad debts Inventory Land Building Less: Accumulated depreciation Equipment Less: Accumulated depreciation D Weimer LTD Corp. Comparative Balance Sheets December 31. 2017 and 2016 (S in 000) 2017 2016 $855 $1,325 1,800 1.390 (35) (40) 2,400 1,575 2,300 1.800 6,300 6,300 (900) (810) 7.750 6,750 (1.585) (1.440) S18.885 $16,850 $1,175 250 850 Liabilities: Accounts payable Income tax payable Accrued expenses payable Lease liability-land Note payable Less: Discount Bonds Payable Shareholders' Equity: Common stock Paid-in capital - excess of par Retained camnings Less: Treasury stock $1.950 400 800 725 100 (20) 200 100 (25) 150 9,000 2,025 3.325 9,100 2,725 2.923 (20) $18.885 $16,850 Weimer LTD Corp. Income Statement For year ended December 31, 2017 (5 in 000) 57,935 150 225) 8,060 Revenues: Sales Gain on sale of land Loss on equipment sale Expenses and losses: Cost of goods sold Depreciation expense Lower of cost or market inventory adj. Equipment impairment charge Bad debt expense Interest expense Operating expenses Income before tax Income tax expense Net income $1,800 1,035 200 900 75 25 1.400 5435 $2,625 1.000 1,625 Additional information from the accounting records: a. During 2017, equipment with a cost of $1,000 (80% depreciated) was sold. b. During 2017, land with a cost of $225 was sold The Statement of Shareholders' equity reveals reductions of $800 for stock dividends and 51.225 for cash dividends d. During 2017, land was acquired by signing a long term lease Required: 1. Prepare the statement of cash flow by the indirect method using the worksheet format. Although a "formal" statement is not required, your finished product should have all the information disclosed on a formal statement. 2. Prepare "cash flows from operating activities" by the direct method using the conversion schedule A worksheet for the indirect and indirect method is found under "Exam and Quiz" folder on Canvas. Be sure to use both templates - indirect and direct methods
