During this year, Weaver sold some equipment for $18 that had cost $30 and on which there was accumulateddepreciation of $10. In addition, the company sold long-term investments for $13 that had cost $7 when purchased severalyears ago. Weaver paid a cash dividend this year and the company repurchased $40 of its own stock. This year Weaverdid not retire any bonds.2. Using the information from Part 1, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flowsfor this year. (List any deduction in cash and cash outflows as negative amounts.)Operating activities:Investing activities:Financing activities:Weaver CompanyStatement of Cash FlowsFor This Year Ended December 31Beginning cash and cash equivalentsEnding cash and cash equivalents AssetsCashAccounts receivableInventoryPrepaid expensesTotal current assetsComparative Balance Sheetat December 31Property, plant, and equipmentLess accumulated depreciationNet property, plant, and equipmentLong-term investmentsTotal assetsLiabilities and Stockholders' EquityAccounts payableAccrued liabilitiesIncome taxes payableTotal current liabilitiesBonds payableTotal liabilitiesCommon stockRetained earningsTotal stockholders' equityTotal liabilities and stockholders' equityWeaver CompanyIncome StatementFor This Year Ended December 31SalesCost of goods soldGross marginSelling and administrative expensesNet operating incomeNonoperating items:Gain on sale of investmentsLoss on sale of equipmentIncome before taxesIncome taxesNet income$6(2)This Year$152941528469513(80)43325$ 927$ 3027272446199645161121282$ 927$ 7554473082228649024$ 66Last Year$122281955440434(72)36232$ 834$ 226776536817053820195296$ 834

Cash flow statement The statement that prepares after the finalization of balance sheet and profit…

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 $7 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. 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.) Operating activities: Investing activities: Financing activities: Weaver Company Statement of Cash Flows For This Year Ended December 31 Beginning cash and cash equivalents Ending cash and cash equivalents

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 $7 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. 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.) Operating activities: Investing activities: Financing activities: Weaver Company Statement of Cash Flows For This Year Ended December 31 Beginning cash and cash equivalents Ending cash and cash equivalents

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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Question

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 $7 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.
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.)
Operating activities:
Investing activities:
Financing activities:
Weaver Company
Statement of Cash Flows
For This Year Ended December 31
Beginning cash and cash equivalents
Ending cash and cash equivalents

Assets
Cash
Accounts receivable
Inventory
Prepaid expenses
Total current assets
Comparative Balance Sheet
at December 31
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
$6
(2)
This Year
$15
294
152
8
469
513
(80)
433
25
$ 927
$ 302
72
72
446
199
645
161
121
282
$ 927
$ 755
447
308
222
86
4
90
24
$ 66
Last Year
$12
228
195
5
440
434
(72)
362
32
$ 834
$ 226
77
65
368
170
538
201
95
296
$ 834

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