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] 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.)

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 55PSB: Preparing a Statement of Cash Flows Volusia Company reported the following comparative balance...

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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:

	This Year	Last Year
Weaver Company Comparative Balance Sheet at December 31
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.)

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