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 $40 of its own stock. This year Weaver did not retire any bonds. Required:1. Using the indirect method, determine the net cash provided by/used in operating activities for this year. (List any deduction in cash outflows as negative amounts.) Weaver CompanyStatement of Cash Flows–Indirect Method (partial)Assessment Tool iFrame$ This YearLast YearAssetsCash2$$15Accounts receivable340240InventoryPrepaid expenses12517510Total current assets484436Property, plant, and equipmentLess accumulated depreciation6104709385Net property, plant, and equipment517385Long-term investments1619Total assets$ 1,017$ 840Liabilities and Stockholders' EquityAccounts payable$ 310$ 230Accrued liabilities6072Income taxes payable4034Total current liabilities410336Bonds payable290180Total liabilities700516Common stock210250Retained earningsTotal stockholders' equity10774317324Total liabilities and stockholders' equity$ 1,017$ 840Weaver CompanyIncome StatementFor This Year Ended December 31Sales$800Cost of goods soldGross margin500300Selling and administrative expensesNet operating incomeNonoperating items:21387$ 7(4)Gain on sale of investmentsLoss on sale of equipment3Income before taxes90Income taxes27Net income$ 63

Name: During this year, Weaver sold some equipment for $20 that had cost $40
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Description: 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

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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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.

Required:

1. Using the indirect method, determine the net cash provided by/used in operating activities for this year. (List any deduction in cash outflows as negative amounts.)

Weaver Company
Statement of Cash Flows–Indirect Method (partial)
Assessment Tool iFrame
$

This Year
Last Year
Assets
Cash
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
Total stockholders' equity
107
74
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

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