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28 Sep 2019
Required information
[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 $ 2 $ 12 Accounts receivable 308 230 Inventory 157 194 Prepaid expenses 9 5 Total current assets 476 441 Property, plant, and equipment 514 436 Less accumulated depreciation (86 ) (72 ) Net property, plant, and equipment 428 364 Long-term investments 26 32 Total assets $ 930 $ 837 Liabilities and Stockholders' Equity Accounts payable $ 302 $ 225 Accrued liabilities 73 77 Income taxes payable 71 65 Total current liabilities 446 367 Bonds payable 195 172 Total liabilities 641 539 Common stock 162 201 Retained earnings 127 97 Total stockholdersâ equity 289 298 Total liabilities and stockholders' equity $ 930 $ 837
Weaver Company
Income Statement
For This Year Ended December 31 Sales $ 753 Cost of goods sold 445 Gross margin 308 Selling and administrative expenses 222 Net operating income 86 Nonoperating items: Gain on sale of investments $ 7 Loss on sale of equipment (1 ) 6 Income before taxes 92 Income taxes 23 Net income $ 69
During this year, Weaver sold some equipment for $19 that had cost $30 and on which there was accumulated depreciation of $10. In addition, the company sold long-term investments for $13 that had cost $6 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $39 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. Please provide the whole Statement of Cash Flows (using Indirect Method) for Weaver Company.
Required information
[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 | $ | 2 | $ | 12 | ||||
Accounts receivable | 308 | 230 | ||||||
Inventory | 157 | 194 | ||||||
Prepaid expenses | 9 | 5 | ||||||
Total current assets | 476 | 441 | ||||||
Property, plant, and equipment | 514 | 436 | ||||||
Less accumulated depreciation | (86 | ) | (72 | ) | ||||
Net property, plant, and equipment | 428 | 364 | ||||||
Long-term investments | 26 | 32 | ||||||
Total assets | $ | 930 | $ | 837 | ||||
Liabilities and Stockholders' Equity | ||||||||
Accounts payable | $ | 302 | $ | 225 | ||||
Accrued liabilities | 73 | 77 | ||||||
Income taxes payable | 71 | 65 | ||||||
Total current liabilities | 446 | 367 | ||||||
Bonds payable | 195 | 172 | ||||||
Total liabilities | 641 | 539 | ||||||
Common stock | 162 | 201 | ||||||
Retained earnings | 127 | 97 | ||||||
Total stockholdersâ equity | 289 | 298 | ||||||
Total liabilities and stockholders' equity | $ | 930 | $ | 837 | ||||
Weaver Company Income Statement For This Year Ended December 31 | ||||||
Sales | $ | 753 | ||||
Cost of goods sold | 445 | |||||
Gross margin | 308 | |||||
Selling and administrative expenses | 222 | |||||
Net operating income | 86 | |||||
Nonoperating items: | ||||||
Gain on sale of investments | $ | 7 | ||||
Loss on sale of equipment | (1 | ) | 6 | |||
Income before taxes | 92 | |||||
Income taxes | 23 | |||||
Net income | $ | 69 | ||||
During this year, Weaver sold some equipment for $19 that had cost $30 and on which there was accumulated depreciation of $10. In addition, the company sold long-term investments for $13 that had cost $6 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $39 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. Please provide the whole Statement of Cash Flows (using Indirect Method) for Weaver Company.
Irving HeathcoteLv2
28 Sep 2019