Required information Skip to question [The following information applies to the questions displayed below.] Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash $ 25 $ 12 Accounts receivable 293 230 Inventory 152 194 Prepaid expenses 9 5 Total current assets 479 441 Property, plant, and equipment 510 432 Less accumulated depreciation (83 ) (71 ) Net property, plant, and equipment 427 361 Long-term investments 24 31 Total assets $ 930 $ 833 Liabilities and Stockholders' Equity Accounts payable $ 302 $ 225 Accrued liabilities 71 80 Income taxes payable 75 63 Total current liabilities 448 368 Bonds payable 200 171 Total liabilities 648 539 Common stock 162 200 Retained earnings 120 94 Total stockholders’ equity 282 294 Total liabilities and stockholders' equity $ 930 $ 833 Weaver Company Income Statement For This Year Ended December 31 Sales $ 752 Cost of goods sold 447 Gross margin 305 Selling and administrative expenses 220 Net operating income 85 Nonoperating items: Gain on sale of investments $ 5 Loss on sale of equipment (2 ) 3 Income before taxes 88 Income taxes 24 Net income $ 64 During this year, Weaver sold some equipment for $19 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 $38 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.)

Required information Skip to question [The following information applies to the questions displayed below.] Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash $ 25 $ 12 Accounts receivable 293 230 Inventory 152 194 Prepaid expenses 9 5 Total current assets 479 441 Property, plant, and equipment 510 432 Less accumulated depreciation (83 ) (71 ) Net property, plant, and equipment 427 361 Long-term investments 24 31 Total assets $ 930 $ 833 Liabilities and Stockholders' Equity Accounts payable $ 302 $ 225 Accrued liabilities 71 80 Income taxes payable 75 63 Total current liabilities 448 368 Bonds payable 200 171 Total liabilities 648 539 Common stock 162 200 Retained earnings 120 94 Total stockholders’ equity 282 294 Total liabilities and stockholders' equity $ 930 $ 833 Weaver Company Income Statement For This Year Ended December 31 Sales $ 752 Cost of goods sold 447 Gross margin 305 Selling and administrative expenses 220 Net operating income 85 Nonoperating items: Gain on sale of investments $ 5 Loss on sale of equipment (2 ) 3 Income before taxes 88 Income taxes 24 Net income $ 64 During this year, Weaver sold some equipment for $19 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 $38 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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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[The following information applies to the questions displayed below.]

Comparative financial statements for Weaver Company follow:

Weaver Company Comparative Balance Sheet at December 31
	This Year		Last Year
Assets
Cash	$	25		$	12
Accounts receivable		293			230
Inventory		152			194
Prepaid expenses		9			5
Total current assets		479			441
Property, plant, and equipment		510			432
Less accumulated depreciation		(83	)		(71	)
Net property, plant, and equipment		427			361
Long-term investments		24			31
Total assets	$	930		$	833
Liabilities and Stockholders' Equity
Accounts payable	$	302		$	225
Accrued liabilities		71			80
Income taxes payable		75			63
Total current liabilities		448			368
Bonds payable		200			171
Total liabilities		648			539
Common stock		162			200
Retained earnings		120			94
Total stockholders’ equity		282			294
Total liabilities and stockholders' equity	$	930		$	833

Weaver Company Income Statement For This Year Ended December 31
Sales				$	752
Cost of goods sold					447
Gross margin					305
Selling and administrative expenses					220
Net operating income					85
Nonoperating items:
Gain on sale of investments	$	5
Loss on sale of equipment		(2	)		3
Income before taxes					88
Income taxes					24
Net income				$	64

During this year, Weaver sold some equipment for $19 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 $38 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.)

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