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 |
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This Year |
Last Year |
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Assets | ||||||||
Cash and cash equivalents | $ | 16 | $ | 12 | ||||
Accounts receivable | 296 | 230 | ||||||
Inventory | 157 | 195 | ||||||
Prepaid expenses | 9 | 6 | ||||||
Total current assets | 478 | 443 | ||||||
Property, plant, and equipment | 505 | 427 | ||||||
Less accumulated depreciation | (85 | ) | (71 | ) | ||||
Net property, plant, and equipment | 420 | 356 | ||||||
Long-term investments | 28 | 34 | ||||||
Total assets | $ | 926 | $ | 833 | ||||
Liabilities and Stockholders' Equity | ||||||||
Accounts payable | $ | 304 | $ | 226 | ||||
Accrued liabilities | 70 | 78 | ||||||
Income taxes payable | 71 | 64 | ||||||
Total current liabilities | 445 | 368 | ||||||
Bonds payable | 196 | 171 | ||||||
Total liabilities | 641 | 539 | ||||||
Common stock | 163 | 201 | ||||||
Retained earnings | 122 | 93 | ||||||
Total stockholders’ equity | 285 | 294 | ||||||
Total liabilities and stockholders' equity | $ | 926 | $ | 833 | ||||
Weaver Company Income Statement For This Year Ended December 31 |
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Sales | $ | 752 | ||||
Cost of goods sold | 447 | |||||
Gross margin | 305 | |||||
Selling and administrative expenses | 219 | |||||
Net operating income | 86 | |||||
Nonoperating items: | ||||||
Gain on sale of investments | $ | 7 | ||||
Loss on sale of equipment | (2 | ) | 5 | |||
Income before taxes | 91 | |||||
Income taxes | 24 | |||||
Net income | $ | 67 | ||||
During this year, Weaver sold some equipment for $18 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 $38 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.)
Weaver Company | ||
Statement of Cash Flows - Indirect Method | ||
Year Ended December 31 | ||
Cash flow from operating activities | ||
Net Income before tax | 91 | |
Adjust to reconcile net income to | ||
Net cash provided by operating activities: | ||
Depreciation expense | 24 | |
Gain on sale of investments | -7 | |
Loss on sale of equipment | 2 | |
Increase in Accounts receivable | -66 | |
Decrease in Inventories | 38 | |
Increase in Prepaid expenses | -3 | |
Increase in Accounts Payable | 78 | |
Decrease in accrued liability | -8 | |
58 | ||
Cash generating from operating activities | 149 | |
Less: Tax Paid | -17 | |
Net Cash provided by operating activities | 132 | |
Cash flow from investing activities | ||
Proceeds from Long-term investments | 13 | |
Proceeds from sale of Equipment | 18 | |
Purchase of equipment | -108 | |
Net cash used in investing activities | -77 | |
Cash flow from financing activities | ||
Purchase of treasury stock | -38 | |
Proceeds from Bonds Payable | 25 | |
Dividend Paid | -38 | |
Net cash used in financing activities | -51 | |
Net decrease in cash | 4 | |
Cash and cash equivalents, December 31, Last Year | 12 | |
Cash and cash equivalents, December 31, This Year | 16 |
Required information [The following information applies to the questions displayed below.] Comparative financial statements for Weaver...
[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 $ -4 $ 11 Accounts receivable 310 230 Inventory 156 195 Prepaid expenses 9 5 Total current assets 471 441 Property, plant, and equipment 516 437 Less accumulated depreciation (86 ) (72 ) Net property, plant, and equipment 430 365 Long-term investments 25 32 Total assets $ 926 $ 838...
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 $ 8 $ 12 229 194 6 441 429 (70) 359 423 28 34 933 $834 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Long-term investments Total assets Liabilities and Stockholders' Equity Accounts payable Accrued liabilities...
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 $ 19 299 $ 12 231 195 156 9 6 483 508 (86) 422 444 428 (72) 356 32 $ 832 25 $ 930 Assets Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Long-term...
Requlred 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 13 229 6 Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Long-term investments 388 157 9 196 6 488 444 509 430 (85) 424 (71) 359 32 $835 26 Total assets $ 930 Liabilities and Stockholders'...
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 Last Year Year Assets $ 17 Cash and cash equivalents $ 12 Accounts receivable 299 231 157 196 Inventory Prepaid expenses 482 Total current assets 444 Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Long-term investments 513 435 (86) (72) 427 363 24 30 $ 933 $837 Total assets...
just answer (The following Information applies to the questions displayed below.) Comparative financial statements for Weaver Company follow: Last Year $ 11 230 155 195 nces 480 441 165 -(71) Weaver Company Comparative Balance Sheet at December 31 This Year Assets Cash and cash equivalents $ 18 Accounts receivable 299 Inventory Prepaid expenses Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Long-term investments Total assets Liabilities and Stockholders' Equity Accounts payable $302 Accrued...
Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash $ 7 $ 11 Accounts receivable 309 229 Inventory 158 196 Prepaid expenses 9 5 Total current assets 483 441 Property, plant, and equipment 509 430 Less accumulated depreciation (86 ) (71 ) Net property, plant, and equipment 423 359 Long-term investments 27 33 Total assets $ 933 $ 833 Liabilities and Stockholders' Equity Accounts payable $ 304 $...
The following information applies to the questions oisplayed below.] Comparative financial statements for Weaver Company follow: Weaver Company Comparative Bence Sheet December 31, 2015 and 2014 2015 $ 2 2014 $ 13 Cesh Accounts receivable Inventory Prepaid expenses Total current esset: Property, plant and equipment Les accumulated depreclet on (85) 420 (71 364 Net property, plant, and equipment Long-term Investments Total assets $ 036 Liabilities and Stockholders' Equity Accounts payable Accrued abilities Income taxes payable $ 301 $225 Total current...
omparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash $ -4 $ 11 Accounts receivable 310 230 Inventory 156 195 Prepaid expenses 9 5 Total current assets 471 441 Property, plant, and equipment 516 437 Less accumulated depreciation (86 ) (72 ) Net property, plant, and equipment 430 365 Long-term investments 25 32 Total assets $ 926 $ 838 Liabilities and Stockholders' Equity Accounts payable $ 304 $...
Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash and cash equivalents $ 16 $ 12 Accounts receivable 296 230 Inventory 157 195 Prepaid expenses 9 6 Total current assets 478 443 Property, plant, and equipment 505 427 Less accumulated depreciation (85 ) (71 ) Net property, plant, and equipment 420 356 Long-term investments 28 34 Total assets $ 926 $ 833 Liabilities and Stockholders' Equity Accounts payable $ 304 $ 226 Accrued liabilities 70...