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Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 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 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 Income before taxes Income taxes Net income $ 10 (2) This Year $5 390 135 5 535 580 85 495 19 $ 1,049 $ 290 45 74 409 270 679 213 157 370 $ 1,049 $ 770 435 335 193 142 8 150 45 $ 105 Last Year $ 17 270 185 3 475 470 80 390 37 $ 902 $ 235 60 67 362 170 532 300 70 370 $ 902 During this year, Weaver sold some equipment for $17 that had cost $38 and on which there was accumulated depreciation of $19. In addition, the company sold long-term investments for $28 that had cost $18 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $87 of its own stock. This year Weaver did not retire any bonds. Required: 1. Using the direct method, adjust the company's income statement for this year to a cash basis. 2. Using the information obtained in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for this year.

Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 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 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 Income before taxes Income taxes Net income $ 10 (2) This Year $5 390 135 5 535 580 85 495 19 $ 1,049 $ 290 45 74 409 270 679 213 157 370 $ 1,049 $ 770 435 335 193 142 8 150 45 $ 105 Last Year $ 17 270 185 3 475 470 80 390 37 $ 902 $ 235 60 67 362 170 532 300 70 370 $ 902 During this year, Weaver sold some equipment for $17 that had cost $38 and on which there was accumulated depreciation of $19. In addition, the company sold long-term investments for $28 that had cost $18 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $87 of its own stock. This year Weaver did not retire any bonds. Required: 1. Using the direct method, adjust the company's income statement for this year to a cash basis. 2. Using the information obtained in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for this year.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Parts 1 and 2 please

Required Deauired Required 2 Using the direct method, adjust the company's income statement for this year to a cash basis. (Adjustment amounts that are to be deducted should be indicated with a minus sign.) Weaver Company Direct Method of Determining the Net Cash flows from Operating activities Adjustments to a cash basis: Adjustments to a cash basis: Selling and administrative expenses Adjustments to a cash basis: Income taxes Adjustments to a cash basis: < Required 1 $ 0 0 0 Required 2 > Show less
Transcribed Image Text:Required Deauired Required 2 Using the direct method, adjust the company's income statement for this year to a cash basis. (Adjustment amounts that are to be deducted should be indicated with a minus sign.) Weaver Company Direct Method of Determining the Net Cash flows from Operating activities Adjustments to a cash basis: Adjustments to a cash basis: Selling and administrative expenses Adjustments to a cash basis: Income taxes Adjustments to a cash basis: < Required 1 $ 0 0 0 Required 2 > Show less
Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 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 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 Income before taxes Income taxes Net income $ 10 (2) This Year $5 390 135 5 535 580 85 495 19 $ 1,049 $ 290 45 74 409 270 679 213 157 370 $ 1,049 $ 770 435 335 193 142 8 150 45 $105 Last Year $ 17 270 185 3 475 470 80 390 37 $ 902 $ 235 60 67 362 170 532 300 70 370 $902 During this year, Weaver sold some equipment for $17 that had cost $38 and on which there was accumulated depreciation of $19. In addition, the company sold long-term investments for $28 that had cost $18 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $87 of its own stock. This year Weaver did not retire any bonds. Required: 1. Using the direct method, adjust the company's income statement for this year to a cash basis. 2. Using the information obtained in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for this year.
Transcribed Image Text:Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 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 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 Income before taxes Income taxes Net income $ 10 (2) This Year $5 390 135 5 535 580 85 495 19 $ 1,049 $ 290 45 74 409 270 679 213 157 370 $ 1,049 $ 770 435 335 193 142 8 150 45 $105 Last Year $ 17 270 185 3 475 470 80 390 37 $ 902 $ 235 60 67 362 170 532 300 70 370 $902 During this year, Weaver sold some equipment for $17 that had cost $38 and on which there was accumulated depreciation of $19. In addition, the company sold long-term investments for $28 that had cost $18 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $87 of its own stock. This year Weaver did not retire any bonds. Required: 1. Using the direct method, adjust the company's income statement for this year to a cash basis. 2. Using the information obtained in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for this year.
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