Comparative financial statements for Weaver Company follow: Weaver Conpany Comparative Balance Sheet at Decenber 31 This Year Last Tear Assets Cash and cash equivalents Accounts receivable Inventory Prepaidfexpenses Total cherent assets Property, plant, and equipnent Less accumulated depreciation Net property, plant, and equipnent Long-tern investmenta 15 430 19 290 150 195 602 600 105 495 509 490 40 450 18 19 Total assets $1,115 $998 Liabilities and Stockhoelders Equity Accounts payable Acerued 1iabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Common stock Retained earnings Total stockholders' equity $ 245 65 80 69 76 451 250 394 190 584 701 338 400 14 76 414 414 Total liabilities and stockholders' equity $1,115 $998 Meaver Company Incone Statenent For This Tear Ended Decenber 31 Sales $790 445 Cost of goods sold Gross nargin Selling and adninistrative expenses Net operating incone Nonoperating itens Gain on sale of investnents Loss on sale of equipnent Incone before taxes Incone taxes 345 227 118 $11 120 Net incone During this year, Weaver sold some equipment for $10 that had cost $40 and on which there was accumulated depreciation of $21. In addition, the company sold long-term investments for $32 that had cost $21 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $62 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 () above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for this year Complete this question by entering your answers in the tabs below.
Comparative financial statements for Weaver Company follow: Weaver Conpany Comparative Balance Sheet at Decenber 31 This Year Last Tear Assets Cash and cash equivalents Accounts receivable Inventory Prepaidfexpenses Total cherent assets Property, plant, and equipnent Less accumulated depreciation Net property, plant, and equipnent Long-tern investmenta 15 430 19 290 150 195 602 600 105 495 509 490 40 450 18 19 Total assets $1,115 $998 Liabilities and Stockhoelders Equity Accounts payable Acerued 1iabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Common stock Retained earnings Total stockholders' equity $ 245 65 80 69 76 451 250 394 190 584 701 338 400 14 76 414 414 Total liabilities and stockholders' equity $1,115 $998 Meaver Company Incone Statenent For This Tear Ended Decenber 31 Sales $790 445 Cost of goods sold Gross nargin Selling and adninistrative expenses Net operating incone Nonoperating itens Gain on sale of investnents Loss on sale of equipnent Incone before taxes Incone taxes 345 227 118 $11 120 Net incone During this year, Weaver sold some equipment for $10 that had cost $40 and on which there was accumulated depreciation of $21. In addition, the company sold long-term investments for $32 that had cost $21 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $62 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 () above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for this year Complete this question by entering your answers in the tabs below.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Comparative financial statements for Weaver Company follow:
Weaver Company
Comparative Balance Sheet
at Decenber 31
This Year Last Year
Ansets
Canh and canh equivalents
Accounte receivable
Inventory
Prepaiafexpenses
Total chrrent assets
Property, plant, and equi pnent
Less accumulated depreeiation
Net property, plant, and equipnent
Long-term investmenta
15
19
430
290
150
7
195
602
509
600
105
490
40
450
495
18
39
Total asseta
$1,115
$ 998
Liabilities and Stockholders' Equity
Accounts payable
Acerued liabilities
Income taxes payable
Total current liabilitien
Bonds payable
Total liabilities
$ 310
65
76
245
80
69
451
250
394
190
701
584
Common stock
Retained earnings
Total stockholders equity
338
400
76
14
414
$1,115
414
Total liabilities and stockholders' equity
998
Meaver Company
Incone Statement
For This Year Ended Decenber 31
Sales
$790
Cost of gooda sold
Gross margin
Selling and administrative expenses
Net operating income
Nonoperating itema:
Gain on sale of investments
Loss on sale of equipment
Income before taxes
Income taxes
445
345
227
118
$11
(9)
120
36
Net income
$ 84
During this year, Weaver sold some equipment for $10 that had cost $40 and on which there was accumulated
depreciation of $21. in addition, the company sold long-term investments for $32 that had cost $21 when purchased
several years ago. Weaver paid a cash dividend this year and the company repurchased $62 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.
Complete this question by entering your answers in the tabs below.
Transcribed Image Text:Check my work
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.
Complete this question by entering your answers in the tabs below.
Required 1
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
Sales
790
Adjustments to a cash basis:
790
Adjustments to a cash basis:
Selling and administrative expenses
Adjustments to a cash basis:
Income taxes
Adjustments to a cash basis:
790
Required 1
Required 2 >
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