Weaver Company Comparative Balance Sheet at December 31 This Last Year Year Assets $ 20 Cash and cash equivalents Accounts receivable $ 12 300 230 160 195 Inventory Prepaid expenses 488 442 Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Long-term investments 506 428 (85) (70) 358 421 26 33 $ 935 $833 Total assets Liabilities and Stockholders' Equity Accounts payable Accrued liabilities Income taxes payable $ 304 $225 79 71 65 74 Total current liabilities 449 369 Bonds payable 170 195 644 539 Total liabilities 165 200 Common stock Retained earnings Total stockholders' equity 94 126 291 294 $ 935 $833 Total liabilities and stockholders' equity Weaver Company Income Statement For This Year Ended December 31 Sales $754 Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of investments 445 309 221 88 $ 5 Loss on sale of equipment (1) Income before taxes 92 25 Income taxes $ 67 Net income 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 $12 that had cost $7 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $35 of its own stock. This year Weaver did not retire any bonds. Problem 13-7 Part 2 2. Using the information in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for this year. (List any deduction in cash and cash outflows as negative amounts.) Weaver Company Statement of Cash Flows For This Year Ended December 31 Operating activities: Investing activities: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents