Question

The following information applies to the questions oisplayed below.] Comparative financial statements for Weaver Company follow: Weaver Company Comparative Bence Sheet December 31, 2015 and 2014 2015 $ 2 2014 $ 13 Cesh Accounts receivable Inventory Prepaid expenses Total current esset: Property, plant and equipment Les accumulated depreclet on (85) 420 (71 364 Net property, plant, and equipment Long-term Investments Total assets $ 036 Liabilities and Stockholders' Equity Accounts payable Accrued abilities Income taxes payable $ 301 $225 Total current liables Bonds beyabe Total abilities 643541 Common stock Retained earnings Total stockholders' equity Total abilities and stockholders equity 285 $920 295 $035 Weaver Company Income Statement For the Year Ended December 31 2015 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating Income Nonoperating Items: Gain on sale of investments Loss on sale of equipment $ 7 Income before taxes Income taxes Net Income During 2015. Weaver sold some equipment for $19 that had cost $30 and on which there was accumulated depreciation of $10. In addition, the company sold long-term Investments for $13 that had cost $6 when purchased several years ago. A cash dividend wes paid during 2015 and the company repurchased $37 of its own stock Weaver did not retire any bonds during 2015

Answer 1

Cash Flow Statement
Indirect Method
Cash Flow from Operating Activities
Net Income		$                     64.00
Adjustments
Depreciation	$               25.00			=86-(71-10)
Gain on sale of Investment	$               -7.00
Loss on sale of equipment	$                 1.00
Changes in Current Assets/ Current Liabilities
Increase in Accounts Receivable	$             -77.00			=229-306
Decrease in Inventory	$               35.00			=194-159
Inrease in prepaid expenses	$               -3.00			=5-8
Increase in Accounts Payable	$               76.00			=301-225
Decrease in Accrued Liabilities	$               -9.00			=71-80
Increase in Income Tax Payable	$               10.00			=75-65
Total Adjustments		$                     51.00
Cash from Operating Activities			$              115.00
Cash flow from Investing Activities
Sale of Investments		$                     13.00
Sale of Equipment		$                     19.00
Purchase of Equipment		$                 -109.00		=-(514-(435-30))
Net cash used In investing activities			$               -77.00
Cash flow from Financing Activities
Repurchase of Common Stock		$                   -37.00		=163-200
Issue of Bonds		$                     25.00		=196-171
Dividend Paid		$                   -37.00
Net cash used in financing activities			$               -49.00
Increase in Cash			$               -11.00
Opening Balance of Cash			$                13.00
Closing Balance of Cash			$                   2.00