Question

Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year $ 28 294 152 8 482 509 (83) 426 26 $ 934 $ 13 231 196 5 445 431 (70) 361 32 $838 Assets Cash 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 $ 300 71 74 445 198 643 165 126 291 $ 934 $225 80 65 370 171 541 201 96 297 $838 Weaver Company Income Statement For This Year Ended December 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating Items 1 Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes Net income $ 753 449 304 220 84 $ 7 (2) 89 22 $ 66 During this year, Weaver sold some equipment for $18 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. Weaver paid a cash dividend this year and the company repurchased $36 of its own stock. This year Weaver did not retire any bonds.

Answer 1

Answer:

1)

WEAVER COMPANY
STATEMENT OF CASH FLOWS PARTIAL (USING INDIRECT METHOD)
FOR THE YEAR ENDED DECEMBER 31
Particulars		Amount
		$
Cash flow from operating activities
Net Income		66
Adjustments to reconcile net income to net cash provided by operating activities
Adjustment for non cash effects
Depreciation (70-10-83)		23
Gain on sale of investments		-7
Loss on sale of equipment		2
Change in operating assets & liabilities
Increase in accounts receivable		-63
Decrease in inventory		44
Increase in prepaid expenses		-3
Increase in accounts payable		75
Decrease in accrued liabilities		-9
Increase in income taxes payable		9
Net cash flow from operating activities (a)		137

2)-

WEAVER COMPANY
STATEMENT OF CASH FLOWS PARTIAL (USING INDIRECT METHOD)
FOR THE YEAR ENDED DECEMBER 31
Particulars		Amount
		$
Cash flow from operating activities		137

Cash Flow from Investing activities
Long term investment sold		13
Old equipment sold		18
New equipment purchased (509-(431-30))		-108
Net cash Flow from Investing activities (b)		-77
Cash Flow from Financing activities
Cash dividends paid	($96+$66-$126)	-36
Bonds issued		27
Common stock repurchased		-36
		27
Net cash Flow from Financing activities (c)		-45
Net Change in cash c=a+b+c		-15
Beginning cash balance		13
Closing cash balance		-2