Comparative financial statements for Weaver Company follow: Weaver CompanyComparative Balance Sheetat December 31 This Year Last YearAssets Cash$13 $12 Accounts receivable 292 230 Inventory 153 196 Prepaid expenses 8 6 Total current assets 466 444 Property, plant, and equipment 507 428 Less accumulated depreciation (80) (72)Net property, plant, and equipment 427 356 Long-term investments 27 34 Total assets$920 $834 Liabilities and Stockholders' Equity Accounts payable$303 $224 Accrued liabilities 72 79 Income taxes payable 73 63 Total current liabilities 448 366 Bonds payable 198 172 Total liabilities 646 538 Common stock 160 201 Retained earnings 114 95 Total stockholders’ equity 274 296 Total liabilities and stockholders' equity$920 $834 Weaver CompanyIncome StatementFor This Year Ended December 31Sales $750Cost of goods sold 446Gross margin 304Selling and administrative expenses 222Net operating income 82Nonoperating items: Gain on sale of investments$5 Loss on sale of equipment (3) 2Income before taxes 84Income taxes 24Net income $60 During this year, Weaver sold some equipment for $18 that had cost $31 and on which there was accumulated depreciation of $10. In addition, the company sold long-term investments for $12 that had cost $7 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $41 of its own stock. This year Weaver did not retire any bonds. Required:1. Using the indirect method, determine the net cash provided by/used in operating activities for this year.

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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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Comparative financial statements for Weaver Company follow:

Weaver Company Comparative Balance Sheet at December 31
	This Year		Last Year
Assets
Cash	$	13		$	12
Accounts receivable		292			230
Inventory		153			196
Prepaid expenses		8			6
Total current assets		466			444
Property, plant, and equipment		507			428
Less accumulated depreciation		(80	)		(72	)
Net property, plant, and equipment		427			356
Long-term investments		27			34
Total assets	$	920		$	834
Liabilities and Stockholders' Equity
Accounts payable	$	303		$	224
Accrued liabilities		72			79
Income taxes payable		73			63
Total current liabilities		448			366
Bonds payable		198			172
Total liabilities		646			538
Common stock		160			201
Retained earnings		114			95
Total stockholders’ equity		274			296
Total liabilities and stockholders' equity	$	920		$	834

Weaver Company Income Statement For This Year Ended December 31
Sales				$	750
Cost of goods sold					446
Gross margin					304
Selling and administrative expenses					222
Net operating income					82
Nonoperating items:
Gain on sale of investments	$	5
Loss on sale of equipment		(3	)		2
Income before taxes					84
Income taxes					24
Net income				$	60

During this year, Weaver sold some equipment for $18 that had cost $31 and on which there was accumulated depreciation of $10. In addition, the company sold long-term investments for $12 that had cost $7 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $41 of its own stock. This year Weaver did not retire any bonds.

Required:

1. Using the indirect method, determine the net cash provided by/used in operating activities for this year.

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