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During this year, Weaver sold some equipment for $20 that had cost $40 and on which there was accumulated depreciation of $16. In addition, the company sold long-term investments for $10 that had cost $3 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.)

During this year, Weaver sold some equipment for $20 that had cost $40 and on which there was accumulated depreciation of $16. In addition, the company sold long-term investments for $10 that had cost $3 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.)

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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During this year, Weaver sold some equipment for $20 that had cost $40 and on which there was accumulated depreciation of $16. In addition, the company sold long-term investments for $10 that had cost $3 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.)

Comparative Balance Sheet at December 31 This Year Last Year Assets Cash 2$ 2$ 15 Accounts receivable 340 240 Inventory Prepaid expenses 125 175 10 Total current assets 484 436 Property, plant, and equipment Less accumulated depreciation 610 470 93 85 Net property, plant, and equipment 517 385 Long-term investments 16 19 Total assets $ 1,017 $ 840 Liabilities and Stockholders' Equity Accounts payable $ 310 $ 230 Accrued liabilities 60 72 Income taxes payable 40 34 Total current liabilities 410 336 Bonds payable 290 180 Total liabilities 700 516 Common stock 210 250 Retained earnings 107 74 Total stockholders' equity 317 324 Total liabilities and stockholders' equity $ 1,017 $ 840 Weaver Company Income Statement For This Year Ended December 31 Sales $800 Cost of goods sold Gross margin 500 300 Selling and administrative expenses Net operating income Nonoperating items: 213 87 $ 7 (4) Gain on sale of investments Loss on sale of equipment 3 Income before taxes 90 Income taxes 27 Net income $ 63
Transcribed Image Text:Comparative Balance Sheet at December 31 This Year Last Year Assets Cash 2$ 2$ 15 Accounts receivable 340 240 Inventory Prepaid expenses 125 175 10 Total current assets 484 436 Property, plant, and equipment Less accumulated depreciation 610 470 93 85 Net property, plant, and equipment 517 385 Long-term investments 16 19 Total assets $ 1,017 $ 840 Liabilities and Stockholders' Equity Accounts payable $ 310 $ 230 Accrued liabilities 60 72 Income taxes payable 40 34 Total current liabilities 410 336 Bonds payable 290 180 Total liabilities 700 516 Common stock 210 250 Retained earnings 107 74 Total stockholders' equity 317 324 Total liabilities and stockholders' equity $ 1,017 $ 840 Weaver Company Income Statement For This Year Ended December 31 Sales $800 Cost of goods sold Gross margin 500 300 Selling and administrative expenses Net operating income Nonoperating items: 213 87 $ 7 (4) Gain on sale of investments Loss on sale of equipment 3 Income before taxes 90 Income taxes 27 Net income $ 63
For This Year Ended December 31 Operating activities: Investing activities: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents $
Transcribed Image Text:For This Year Ended December 31 Operating activities: Investing activities: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents $
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