Question

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 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 and stockholders' equity $ 304 $ 226 78 71 63 72 447 199 646 164 367 171 538 200 94 294 $832 120 284 $ 930

Answer 1

Solution

Weaver Company
Cash Flow Statement (partial)
A. Cash Flows from Operating Activity
Net Income		$           62.00
Adjustments to reconcile net income to net cash flows from operating activities
Depreciation expense	$           24.00
Loss on sale of Equipment	$             2.00
Gain on sale of Investment	$           (5.00)
Change in Current operating Asset sand Liabilities
Increase in Accounts receivables	$      (168.00)
Decrease in inventory	$           39.00
Increase in prepaid expense	$           (3.00)
Increase in Accounts payable	$           78.00
Decrease in Accrues Liabilities	$           (7.00)
Increase in income tax payable	$             9.00
		$         (31.00)
Net cash flow from Operating activities		$           31.00

.

Depreciation expense during the year
Beginning balance of Accumulated depreciation account	$           72.00
Less: Accumulated depreciation on sold Equipment	$           10.00
	$           62.00
Ending balance of Accumulated depreciation account	$           86.00
Depreciation for the year	$           24.00