Comparative financial statements for Weaver Company follow:
Weaver Company Comparative Balance Sheet at December 31 |
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This Year | Last Year | ||||
Assets | |||||
Cash and cash equivalents | $ | 3 | $ | 14 | |
Accounts receivable | 330 | 240 | |||
Inventory | 110 | 170 | |||
Prepaid expenses | 9 | 7 | |||
Total current assets | 452 | 431 | |||
Property, plant, and equipment | 550 | 440 | |||
Less accumulated depreciation | 60 | 50 | |||
Net property, plant, and equipment | 490 | 390 | |||
Long-term investments | 25 | 34 | |||
Total assets | $ | 967 | $ | 855 | |
Liabilities and Stockholders' Equity | |||||
Accounts payable | $ | 260 | $ | 220 | |
Accrued liabilities | 80 | 90 | |||
Income taxes payable | 71 | 64 | |||
Total current liabilities | 411 | 374 | |||
Bonds payable | 215 | 140 | |||
Total liabilities | 626 | 514 | |||
Common stock | 235 | 300 | |||
Retained earnings | 106 | 41 | |||
Total stockholders’ equity | 341 | 341 | |||
Total liabilities and stockholders' equity | $ | 967 | $ | 855 | |
Weaver Company Income Statement For This Year Ended December 31 |
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Sales | $ | 740 | ||||
Cost of goods sold | 420 | |||||
Gross margin | 320 | |||||
Selling and administrative expenses | 218 | |||||
Net operating income | 102 | |||||
Nonoperating items: | ||||||
Gain on sale of investments | $ | 13 | ||||
Loss on sale of equipment | (5 | ) | 8 | |||
Income before taxes | 110 | |||||
Income taxes | 33 | |||||
Net income | $ | 77 | ||||
During this year, Weaver sold some equipment for $14 that had cost $35 and on which there was accumulated depreciation of $16. In addition, the company sold long-term investments for $22 that had cost $9 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $65 of its own stock. This year Weaver did not retire any bonds.
Required:
1. Using the direct method, adjust the company’s income statement for this year to a cash basis.
2. Using the information obtained in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for this year.
1)
2)
Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This...
Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash and cash equivalents $ 3 $ 14 Accounts receivable 330 240 Inventory 110 170 Prepaid expenses 9 7 Total current assets 452 431 Property, plant, and equipment 550 440 Less accumulated depreciation 60 50 Net property, plant, and equipment 490 390 Long-term investments 25 34 Total assets $ 967 $ 855 Liabilities and Stockholders' Equity Accounts payable $ 260...
Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash $ 6 $ 11 Accounts receivable 270 210 Inventory 105 155 Prepaid expenses 6 4 Total current assets 387 380 Property, plant, and equipment 520 410 Less accumulated depreciation 95 60 Net property, plant, and equipment 425 350 Long-term investments 26 31 Total assets $ 838 $ 761 Liabilities and Stockholders' Equity Accounts payable $ 230 $ 205 Accrued...
Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash $ 13 $ 29 Accounts receivable 650 400 Inventory 185 250 Prepaid expenses 6 4 Total current assets 854 683 Property, plant, and equipment 710 600 Less accumulated depreciation 100 90 Net property, plant, and equipment 610 510 Long-term investments 6 50 Total assets $ 1,470 $ 1,243 Liabilities and Stockholders' Equity Accounts payable $ 420 $ 300 Accrued...
Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash $ 11 $ 23 Accounts receivable 510 330 Inventory 160 215 Prepaid expenses 5 3 Total current assets 686 571 Property, plant, and equipment 640 530 Less accumulated depreciation 95 80 Net property, plant, and equipment 545 450 Long-term investments 10 43 Total assets $ 1,241 $ 1,064 Liabilities and Stockholders' Equity Accounts payable $ 350 $ 265 Accrued...
Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash $ 16 $ 22 Accounts receivable 490 320 Inventory 165 210 Prepaid expenses 10 8 Total current assets 681 560 Property, plant, and equipment 630 520 Less accumulated depreciation 120 70 Net property, plant, and equipment 510 450 Long-term investments 13 42 Total assets $ 1,204 $ 1,052 Liabilities and Stockholders' Equity Accounts payable $ 340 $ 260 Accrued...
Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash $ 7 $ 11 Accounts receivable 309 229 Inventory 158 196 Prepaid expenses 9 5 Total current assets 483 441 Property, plant, and equipment 509 430 Less accumulated depreciation (86 ) (71 ) Net property, plant, and equipment 423 359 Long-term investments 27 33 Total assets $ 933 $ 833 Liabilities and Stockholders' Equity Accounts payable $ 304 $...
Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash $ -7 $ 11 Accounts receivable 310 230 Inventory 156 194 Prepaid expenses 9 5 Total current assets 468 440 Property, plant, and equipment 510 431 Less accumulated depreciation (85 ) (70 ) Net property, plant, and equipment 425 361 Long-term investments 28 35 Total assets $ 921 $ 836 Liabilities and Stockholders' Equity Accounts payable $ 304 $...
Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash $ -7 $ 11 Accounts receivable 310 230 Inventory 156 194 Prepaid expenses 9 5 Total current assets 468 440 Property, plant, and equipment 510 431 Less accumulated depreciation (85 ) (70 ) Net property, plant, and equipment 425 361 Long-term investments 28 35 Total assets $ 921 $ 836 Liabilities and Stockholders' Equity Accounts payable $ 304 $...
Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash and cash equivalents $ 13 $ 30 Accounts receivable 670 410 Inventory 190 255 Prepaid expenses 7 5 Total current assets 880 700 Property, plant, and equipment 720 610 Less accumulated depreciation 105 40 Net property, plant, and equipment 615 570 Long-term investments 3 51 Total assets $ 1,498 $ 1,321 Liabilities and Stockholders' Equity Accounts payable $ 430...
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...