Question

m 1 of 2 Required information Problem 14-7 Prepare a statement of Cash Flows [LO14-1, L014-2] {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 OOK Last $ 11 308 $ 12 228 156 o erence 484 506 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Les accumulated depreciation Net property, plant, and equipment Long-term investments Total assets Liabilities and Stockholders' Equity Accounts payable Acerued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $305 $ 224 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 $ 7 Loss on sale of equipment Income before taxes Income taxes Het income (3 *** During this year, Weaver sold some equipment for $18 that had cost 531 and on which there was accumulated depreciation or $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. Problem 14-7 Part 1

Answer 1

Amount 28 25 Solution - Statement of cash flow Amount (3) Porticulars Net Profil as per income St. Add: Acc. Dep. And: logs on sale of Eqp 3 less. Gain on investment Add: Nuvidend GXD. 13 Chorges in current assets uabillies: - Accounts Receivable (228-308) (80) Inventory (196-156) no Prepaid expenses (6.a) . (3) Accounts payable (305-224) 81 Acc. habilities (92-98) (6) lorome tax Payable (73-63). cio Cosh provided by Operating activities

Statement of Cash flow Ann Particulars (3) | Oporating activities lou 18 I Investing activities i Purchase of property Sale of equipment sale of Investment Cash used in Investing I actrition < (13) Interest on Band Dividend para Shanes repurchased cash used in financing activities (38) (25) cash & Net the rease in cash equivalent Add : Beginny cash Closing cash Balance

lor TO Bal bla Property, plont & Equipment Alc T O , 1 426 By sale of Ep. 31 T, Cont Bal eld 53711 506 537 Ct. Accumulated To sale of Eap. 10 Depreciation All | By Bel old - 71 | By Inc. Statens To Bol old 86 96 Sale of 31 | T, Pors, Equipment T By Acc. Dep Bonk Je, loss on sale 31 Income statement Net Income less: Acc. Dee $ 66 (25) log: Dividend Exp (Bale figured Net Profit (124-96)