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Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Less accumulated depreciation $ -25 $ 13 337 230 151 194 9 6 472 443 507 427 82 70 Net property, plant, and equipment Long-term investments 425 357 26 32 Total assets $ 923 $ 832 Liabilities and Stockholders' Equity Accounts payable $ 302 $ 225 Accrued liabilities 72 79 Income taxes payable 75 64 Total current liabilities 449 368 Bonds payable 195 171 Total liabilities 644 539 Total stockholders' equity Common stock Retained earnings Total liabilities and stockholders' equity 162 201 117 92 279 293 $ 923 $ 832 Weaver Company Income Statement For This Year Ended December 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes Net income $ 754 449 305 221 84 $ 6 (3) 3 87 23 $ 64 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 $12 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. Using the information from Part 1, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows this year. (List any deduction in cash and cash outflows as negative amounts.)

Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Less accumulated depreciation $ -25 $ 13 337 230 151 194 9 6 472 443 507 427 82 70 Net property, plant, and equipment Long-term investments 425 357 26 32 Total assets $ 923 $ 832 Liabilities and Stockholders' Equity Accounts payable $ 302 $ 225 Accrued liabilities 72 79 Income taxes payable 75 64 Total current liabilities 449 368 Bonds payable 195 171 Total liabilities 644 539 Total stockholders' equity Common stock Retained earnings Total liabilities and stockholders' equity 162 201 117 92 279 293 $ 923 $ 832 Weaver Company Income Statement For This Year Ended December 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes Net income $ 754 449 305 221 84 $ 6 (3) 3 87 23 $ 64 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 $12 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. Using the information from Part 1, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows this year. (List any deduction in cash and cash outflows as negative amounts.)

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 24CE
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Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Less accumulated depreciation $ -25 $ 13 337 230 151 194 9 6 472 443 507 427 82 70 Net property, plant, and equipment Long-term investments 425 357 26 32 Total assets $ 923 $ 832 Liabilities and Stockholders' Equity Accounts payable $ 302 $ 225 Accrued liabilities 72 79 Income taxes payable 75 64 Total current liabilities 449 368 Bonds payable 195 171 Total liabilities 644 539 Total stockholders' equity Common stock Retained earnings Total liabilities and stockholders' equity 162 201 117 92 279 293 $ 923 $ 832 Weaver Company Income Statement For This Year Ended December 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes Net income $ 754 449 305 221 84 $ 6 (3) 3 87 23 $ 64 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 $12 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. Using the information from Part 1, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows this year. (List any deduction in cash and cash outflows as negative amounts.)
Transcribed Image Text:Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Less accumulated depreciation $ -25 $ 13 337 230 151 194 9 6 472 443 507 427 82 70 Net property, plant, and equipment Long-term investments 425 357 26 32 Total assets $ 923 $ 832 Liabilities and Stockholders' Equity Accounts payable $ 302 $ 225 Accrued liabilities 72 79 Income taxes payable 75 64 Total current liabilities 449 368 Bonds payable 195 171 Total liabilities 644 539 Total stockholders' equity Common stock Retained earnings Total liabilities and stockholders' equity 162 201 117 92 279 293 $ 923 $ 832 Weaver Company Income Statement For This Year Ended December 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes Net income $ 754 449 305 221 84 $ 6 (3) 3 87 23 $ 64 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 $12 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. Using the information from Part 1, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows this year. (List any deduction in cash and cash outflows as negative amounts.)
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