Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Long-term investments Total assets Liabilities and Stockholders' Equity Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 26 291 153 8 478 504 (82) 422 28 $ 928 $ 12 231 196 6 445 424 (70) 354 34 $833 $ 304 71 72 447 197 644 162 122 284 $ 928 $225 78 63 366 170 536 202 95 297 $833 Weaver Company Income Statement For This Year Ended December 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of investments Loss on sale of equipment Incone before taxes Income taxes Net Income $752 445 307 228 87 56 (2) 4 91 24 $ 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 $40 of its own stock. This year Weaver did not retire any bonds 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) Net income Adjustments to convert net income to a cash basis Gain on sale of investments Loss on sale of equipment Depreciation Increase in accounts receivable Decrease in inventory Increase in prepaid expenses Increase in accounts payable Decrease in accrued liabilities Increase in income taxes payable 0 0 Netcash rovided by rating activities 2. Using the information from Part 1, 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 Net cash provided by operating activities Investing activities Proceeds from sale of long term investments Proceeds from sale of equipment Additions to property, plant, and equipment 0 Net cash used in investing activities Financing activities Repurchase of common stock issuance of bonds payable co Repurchase of common stock Issuance of bonds payable Cash dividends paid 0 0 Net cash used in financing activities Net increase in cash Beginning cash and cash equivalents Ending cash and cash equivalents $ 0

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

Advanced Accounting Concepts And Practice

Authors: Arnold J. Pahler

9th Edition

0324233531, 978-0324233537

More Books

Students also viewed these Accounting questions

Question

Define Administration and Management

Answered: 1 week ago

Question

Define organisational structure

Answered: 1 week ago