Question

Problem 14-7 Prepare a Statement of Cash Flows [L014-1, 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 Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment $ 12 230 195 305 159 470 509 85 424 27 $ 921 442 429 70 359 Less accumulated depreciation Net property, plant, and equipment Long-term investments Total assets $834 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 $ 301 71 72 $226 79 64 369 198 642 161 118 279 $ 921 540 202 92 294 $834

Answer 1

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

Part 1 Weaver Company Statement of Cash Flows Indirect Method ( Partial) 67 Net Income Ajustment to reconcile net income to net cash from operating activities Loss on sale of asset Gain on sale of investments Depreciation (85-70+10) 2 25 increase in account recieveable (305-230) (75) 36 D Decrease in inventory 195-159) 1 Increase in Prepaid expenses (8-5) 2 Increase in account payable (301-226) 75 Decrease in accrued liabilities (79-71) Increase in income tax payable (72-64) 5 Net cash inflow from operating activities

Part 2 Weaver Compan Statement of Cash Flows For This Year Ended December31 Operating Activities Net cash inflow from operating activities Investing Activities Proceeds from sale of equipment Proceeds from sale of investment Purchase of equipment (509-429+30 Net cash outflow from investing activities Financing activities Bonds issued (198-171 Repurchase common stock Dividend Paid (92+67-118 Net cash outflow from financing activities Net cash outflow from all activities Beginning Cash Balance Closing cash balance 120 18 13 110 79) 27 41 41 14 12