Question

Problem 14-7 Prepare a Statement of Cash Flows [LO14-1, LO14-2] [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 2$ $ 12 Cash Accounts receivable 308 229 Inventory Prepaid expenses 156 195 Total current assets 477 442 Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Long-term investments 512 433 (85) (71) 427 362 26 32 $ 930 $836 Total assets Liabilities and Stockholders' Equity $ 301 $224 Accounts payable Accrued liabilities 73 79 Income taxes payable 73 64 Total current liabilities 447 367 Bonds payable 196 171 538 Total liabilities 643 Common stock 162 201 Retained earnings Total stockholders' equity 125 97 287 298 $ 930 $836 Total liabilities and stockholders' equity

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

5 Answer 2 Part 1) 3 Weaver Company Statement of Cash Flows - Indirect Method (Partial) 6 Net Income 7 Adjustment to convert net income to a cash basis 8 Loss on sale of equipment 9 Gain on sale of investment 10 Depreciation (85+10-71) 11 Increase in account receivable (308-229) 12 Decrease in inventory (195-156) 13 Increase in prepaid expenses (9-6) 14 Increase in account payable (301-224) 15 Decrease in accrued liabilities (79-73) 16 Increase in income tax payable (73-64) 17 18 Net cash provided by operating activities 19 20 For any help please comment in the comment box. 21 10:8: @float