Problem 13-7 (Algo) Prepare a Statement of Cash Flows [LO13-1, LO13-2] 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 $ 15 $ 11 Accounts receivable 291 228 Inventory 152 195 Prepaid expenses 8 5 Total current assets 466 439 Property, plant, and equipment 514 435 Less accumulated depreciation (83) (71) Net property, plant, and equipment 431 364 Long-term investments 25 32 Total assets $ 922 $ 835 Liabilities and Stockholders' Equity Accounts payable $ 302 $ 225 Accrued liabilities 70 79 Income taxes payable 75 63 Total current liabilities 447 367 Bonds payable 199 171 Total liabilities 646 538 Common stock 162 202 Retained earnings 114 95 Total stockholders’ equity 276 297 Total liabilities and stockholders' equity $ 922 $ 835 Weaver Company Income Statement For This Year Ended December 31 Sales $ 752 Cost of goods sold 450 Gross margin 302 Selling and administrative expenses 222 Net operating income 80 Nonoperating items: Gain on sale of investments $ 6 Loss on sale of equipment (3) 3 Income before taxes 83 Income taxes 24 Net income $ 59 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 $13 that had cost $7 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 and cash outflows as negative amounts.) 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.)
Problem 13-7 (Algo) Prepare a Statement of Cash Flows [LO13-1, LO13-2]
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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 | $ 15 | $ 11 |
Accounts receivable | 291 | 228 |
Inventory | 152 | 195 |
Prepaid expenses | 8 | 5 |
Total current assets | 466 | 439 |
Property, plant, and equipment | 514 | 435 |
Less |
(83) | (71) |
Net property, plant, and equipment | 431 | 364 |
Long-term investments | 25 | 32 |
Total assets | $ 922 | $ 835 |
Liabilities and |
||
Accounts payable | $ 302 | $ 225 |
Accrued liabilities | 70 | 79 |
Income taxes payable | 75 | 63 |
Total current liabilities | 447 | 367 |
Bonds payable | 199 | 171 |
Total liabilities | 646 | 538 |
Common stock | 162 | 202 |
Retained earnings | 114 | 95 |
Total stockholders’ equity | 276 | 297 |
Total liabilities and stockholders' equity | $ 922 | $ 835 |
Weaver Company Income Statement For This Year Ended December 31 |
||
Sales | $ 752 | |
---|---|---|
Cost of goods sold | 450 | |
Gross margin | 302 | |
Selling and administrative expenses | 222 | |
Net operating income | 80 | |
Nonoperating items: | ||
Gain on sale of investments | $ 6 | |
Loss on sale of equipment | (3) | 3 |
Income before taxes | 83 | |
Income taxes | 24 | |
Net income | $ 59 |
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 $13 that had cost $7 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 and
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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