Comparative financial statements for Weaver Company follow:
Weaver Company Comparative Balance Sheet at December 31 |
|||||
This Year | Last Year | ||||
Assets | |||||
Cash and cash equivalents | $ | 13 | $ | 30 | |
Accounts receivable | 670 | 410 | |||
Inventory | 190 | 255 | |||
Prepaid expenses | 7 | 5 | |||
Total current assets | 880 | 700 | |||
Property, plant, and equipment | 720 | 610 | |||
Less accumulated depreciation | 105 | 40 | |||
Net property, plant, and equipment | 615 | 570 | |||
Long-term investments | 3 | 51 | |||
Total assets | $ | 1,498 | $ | 1,321 | |
Liabilities and Stockholders' Equity | |||||
Accounts payable | $ | 430 | $ | 305 | |
Accrued liabilities | 75 | 90 | |||
Income taxes payable | 88 | 81 | |||
Total current liabilities | 593 | 476 | |||
Bonds payable | 370 | 310 | |||
Total liabilities | 963 | 786 | |||
Common stock | 368 | 450 | |||
Retained earnings | 167 | 85 | |||
Total stockholders’ equity | 535 | 535 | |||
Total liabilities and stockholders' equity | $ | 1,498 | $ | 1,321 | |
Weaver Company Income Statement For This Year Ended December 31 |
||||||
Sales | $ | 910 | ||||
Cost of goods sold | 505 | |||||
Gross margin | 405 | |||||
Selling and administrative expenses | 247 | |||||
Net operating income | 158 | |||||
Nonoperating items: | ||||||
Gain on sale of investments | $ | 8 | ||||
Loss on sale of equipment | (6 | ) | 2 | |||
Income before taxes | 160 | |||||
Income taxes | 48 | |||||
Net income | $ | 112 | ||||
During this year, Weaver sold some equipment for $13 that had cost $52 and on which there was accumulated depreciation of $33. In addition, the company sold long-term investments for $56 that had cost $48 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $82 of its own stock. This year Weaver did not retire any bonds.
Required:
1. Using the direct method, adjust the company’s income statement for this year to a cash basis.
2. Using the information obtained in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for this year.
Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This...
Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year $ $ 13 670 30 410 $1.498 $1,321 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 Income taxes payable Total current liabilities Bonds payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities...
Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash $ 13 $ 29 Accounts receivable 650 400 Inventory 185 250 Prepaid expenses 6 4 Total current assets 854 683 Property, plant, and equipment 710 600 Less accumulated depreciation 100 90 Net property, plant, and equipment 610 510 Long-term investments 6 50 Total assets $ 1,470 $ 1,243 Liabilities and Stockholders' Equity Accounts payable $ 420 $ 300 Accrued...
Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash $ 11 $ 23 Accounts receivable 510 330 Inventory 160 215 Prepaid expenses 5 3 Total current assets 686 571 Property, plant, and equipment 640 530 Less accumulated depreciation 95 80 Net property, plant, and equipment 545 450 Long-term investments 10 43 Total assets $ 1,241 $ 1,064 Liabilities and Stockholders' Equity Accounts payable $ 350 $ 265 Accrued...
Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash $ 16 $ 22 Accounts receivable 490 320 Inventory 165 210 Prepaid expenses 10 8 Total current assets 681 560 Property, plant, and equipment 630 520 Less accumulated depreciation 120 70 Net property, plant, and equipment 510 450 Long-term investments 13 42 Total assets $ 1,204 $ 1,052 Liabilities and Stockholders' Equity Accounts payable $ 340 $ 260 Accrued...
Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash $ 6 $ 11 Accounts receivable 270 210 Inventory 105 155 Prepaid expenses 6 4 Total current assets 387 380 Property, plant, and equipment 520 410 Less accumulated depreciation 95 60 Net property, plant, and equipment 425 350 Long-term investments 26 31 Total assets $ 838 $ 761 Liabilities and Stockholders' Equity Accounts payable $ 230 $ 205 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 $...
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 310 230 Inventory 156 194 Prepaid expenses 9 5 Total current assets 468 440 Property, plant, and equipment 510 431 Less accumulated depreciation (85 ) (70 ) Net property, plant, and equipment 425 361 Long-term investments 28 35 Total assets $ 921 $ 836 Liabilities and Stockholders' Equity Accounts payable $ 304 $...
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 310 230 Inventory 156 194 Prepaid expenses 9 5 Total current assets 468 440 Property, plant, and equipment 510 431 Less accumulated depreciation (85 ) (70 ) Net property, plant, and equipment 425 361 Long-term investments 28 35 Total assets $ 921 $ 836 Liabilities and Stockholders' Equity Accounts payable $ 304 $...
Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash and cash equivalents $ 3 $ 14 Accounts receivable 330 240 Inventory 110 170 Prepaid expenses 9 7 Total current assets 452 431 Property, plant, and equipment 550 440 Less accumulated depreciation 60 50 Net property, plant, and equipment 490 390 Long-term investments 25 34 Total assets $ 967 $ 855 Liabilities and Stockholders' Equity Accounts payable $ 260...
Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash and cash equivalents $ 3 $ 14 Accounts receivable 330 240 Inventory 110 170 Prepaid expenses 9 7 Total current assets 452 431 Property, plant, and equipment 550 440 Less accumulated depreciation 60 50 Net property, plant, and equipment 490 390 Long-term investments 25 34 Total assets $ 967 $ 855 Liabilities and Stockholders' Equity Accounts payable $ 260...