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 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 Liabilities and Stockholders' Equity Accounts payable $ 302 $225 Accrued liabilities 71 78 Income taxes payable 71 65 Total current liabilities 444 368 Bonds payable Total liabilities 197 171 641 539 201 Common stock 163 Retained earnings Total stockholders' equity 129 97 292 298 $ 933 $837 Total liabilities and stockholders' equity

Answer 1

Amount $ 70 Weaver Company Cashflow Statement using Indirect method as at 31st December this year :- Particulars Amount $ Cash Flows From Operating Activities: Net Income Adjustments to Reconcile Net Income to Net Cash Provided by operations : Add: Depreciation Expense (86-(72-10)) Less: Gain on sale of investments Add: Loss on sale of equipment Changes in Working Capital :- Less: Increase in Accounts receivable (68) Add: Decrease in Inventory Less: Increase in Prepaid expenses Add: Increase in Accounts Payable Less: Decrease in Accrued liabilities Add: Increase in Income taxes Payable 61 131 Net cash provided/(used) by Operating Activities Cash Flows From Investing Activities: Cash received from sale of Equipment Cash received from sale of Long term investments Cash paid for Purchase of Equipment (513-(435-30)) Change in cash due to Investing Activties 19 13 (108) (38) 26 (38) Cash Flows From Financing Cash paid for Dividends (97-70-129) Cash received from Bonds Payable Cash paid for repurchase of own stock Change in cash due to Financing Net Changes in Cashflow from all activities Cash at the beginning of the vear Cash at the end of the year (50)