Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash and cash equivalents $ 15 Accounts receivable 340 240 125 175 Inventory .. Prepaid expenses Total current assets... .... 10 .... 484 436 610 470 Property, plant, and equipment Less accumulated depreciation . 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 60 40 $230 Accrued liabilities 72 Income taxes payable 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 213 Net operating income Nonoperating items: Gain on sale of investments. 87 $7 Loss on sale of equipment (4) 3 Income before taxes 90 Income taxes... 27 Net income $ 63

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Prepare a Statement of Cash Flows

Comparative financial statements for Weaver Company follow:

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 operating activities for this year.

2. Using the information in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for this year.

Weaver Company
Comparative Balance Sheet
at December 31
This Year
Last Year
Assets
Cash and cash equivalents
$ 15
Accounts receivable
340
240
125
175
Inventory ..
Prepaid expenses
Total current assets...
....
10
....
484
436
610
470
Property, plant, and equipment
Less accumulated depreciation .
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
60
40
$230
Accrued liabilities
72
Income taxes payable
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
Transcribed Image Text:Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash and cash equivalents $ 15 Accounts receivable 340 240 125 175 Inventory .. Prepaid expenses Total current assets... .... 10 .... 484 436 610 470 Property, plant, and equipment Less accumulated depreciation . 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 60 40 $230 Accrued liabilities 72 Income taxes payable 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
213
Net operating income
Nonoperating items:
Gain on sale of investments.
87
$7
Loss on sale of equipment
(4)
3
Income before taxes
90
Income taxes...
27
Net income
$ 63
Transcribed Image Text:Weaver Company Income Statement For This Year Ended December 31 Sales .... $800 Cost of goods sold. Gross margin..... 500 300 Selling and administrative expenses 213 Net operating income Nonoperating items: Gain on sale of investments. 87 $7 Loss on sale of equipment (4) 3 Income before taxes 90 Income taxes... 27 Net income $ 63
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