Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash $ 18 $ 11 Accounts receivable 293 231 Inventory 152 194 Prepaid expenses 9 6 Total current assets 472 442 Property, plant, and equipment 505 426 Less accumulated depreciation (82 ) (71 ) Net property, plant, and equipment 423 355 Long-term investments 28 34 Total assets $ 923 $ 831 Liabilities and Stockholders' Equity Accounts payable $ 300 $ 226 Accrued liabilities 71 78 Income taxes payable 74 63 Total current liabilities 445 367 Bonds payable 196 170 Total liabilities 641 537 Common stock 163 202 Retained earnings 119 92 Total stockholders’ equity 282 294 Total liabilities and stockholders' equity $ 923 $ 831 Weaver Company Income Statement For This Year Ended December 31 Sales $ 752 Cost of goods sold 447 Gross margin 305 Selling and administrative expenses 220 Net operating income 85 Nonoperating items: Gain on sale of investments $ 7 Loss on sale of equipment (2 ) 5 Income before taxes 90 Income taxes 24 Net income $ 66 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 $13 that had cost $6 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $39 of its own stock. This year Weaver did not retire any bonds. Required: 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. I am trying to figure out is the additions to property, plant and equipment specifically.
Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash $ 18 $ 11 Accounts receivable 293 231 Inventory 152 194 Prepaid expenses 9 6 Total current assets 472 442 Property, plant, and equipment 505 426 Less accumulated depreciation (82 ) (71 ) Net property, plant, and equipment 423 355 Long-term investments 28 34 Total assets $ 923 $ 831 Liabilities and Stockholders' Equity Accounts payable $ 300 $ 226 Accrued liabilities 71 78 Income taxes payable 74 63 Total current liabilities 445 367 Bonds payable 196 170 Total liabilities 641 537 Common stock 163 202 Retained earnings 119 92 Total stockholders’ equity 282 294 Total liabilities and stockholders' equity $ 923 $ 831 Weaver Company Income Statement For This Year Ended December 31 Sales $ 752 Cost of goods sold 447 Gross margin 305 Selling and administrative expenses 220 Net operating income 85 Nonoperating items: Gain on sale of investments $ 7 Loss on sale of equipment (2 ) 5 Income before taxes 90 Income taxes 24 Net income $ 66 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 $13 that had cost $6 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $39 of its own stock. This year Weaver did not retire any bonds. Required: 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. I am trying to figure out is the additions to property, plant and equipment specifically.
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 19P
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Question
Comparative financial statements for Weaver Company follow:
Weaver Company Comparative Balance Sheet at December 31 |
|||||||
This Year | Last Year | ||||||
Assets | |||||||
Cash | $ | 18 | $ | 11 | |||
293 | 231 | ||||||
Inventory | 152 | 194 | |||||
Prepaid expenses | 9 | 6 | |||||
Total current assets | 472 | 442 | |||||
Property, plant, and equipment | 505 | 426 | |||||
Less |
(82 | ) | (71 | ) | |||
Net property, plant, and equipment | 423 | 355 | |||||
Long-term investments | 28 | 34 | |||||
Total assets | $ | 923 | $ | 831 | |||
Liabilities and |
|||||||
Accounts payable | $ | 300 | $ | 226 | |||
Accrued liabilities | 71 | 78 | |||||
Income taxes payable | 74 | 63 | |||||
Total current liabilities | 445 | 367 | |||||
Bonds payable | 196 | 170 | |||||
Total liabilities | 641 | 537 | |||||
Common stock | 163 | 202 | |||||
119 | 92 | ||||||
Total stockholders’ equity | 282 | 294 | |||||
Total liabilities and stockholders' equity | $ | 923 | $ | 831 | |||
Weaver Company Income Statement For This Year Ended December 31 |
||||||
Sales | $ | 752 | ||||
Cost of goods sold | 447 | |||||
Gross margin | 305 | |||||
Selling and administrative expenses | 220 | |||||
Net operating income | 85 | |||||
Nonoperating items: | ||||||
Gain on sale of investments | $ | 7 | ||||
Loss on sale of equipment | (2 | ) | 5 | |||
Income before taxes | 90 | |||||
Income taxes | 24 | |||||
Net income | $ | 66 | ||||
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 $13 that had cost $6 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $39 of its own stock. This year Weaver did not retire any bonds.
Required:
Using the information from Part 1, along with an analysis of the remaining balance sheet accounts, prepare a statement of
I am trying to figure out is the additions to property, plant and equipment specifically.
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