Question

Required information Problem 13-7 Prepare a Statement of Cash Flows [L013-1, LO13-2] [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 Year Last Year Assets Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment $ 27 296 158 9 490 500 85 415 28 $ 12 230 196 Less accumulated depreciation Net property, plant, and equipment Long-term investment:s Total assets 421 70 351 34 $ 933 $829 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 and stockholders' equity 304 71 73 448 199 647 162 124 286 $ 933 $224 79 64 367 170 537 200 92 292 $829

Answer 1

	Weaver Company
Cash flow from operating activities
Net income for the year						70
Adjustments to convert net income to cash basis:
Depreciation expense			(85 - (70-10)		25
Gain on sale of investments					-7
Loss on sale of Equipments					2
increase in accounts receivable					-66
Decrease in inventory					38
increase in prepaid expense					-3
increase in accounts payable					80
Decrease in accured liabilities					-8
increase in income taxes payable					9
						70
Net cash flow from operating activities						140