Weaver Company Income Statement For the Year Ended December 31, 2014 Sales Cost

Question

Weaver Company Income Statement For the Year Ended December 31, 2014 Sales Cost of goods sold . Gross margin Selling and administrative expenses Net operating income.. Nonoperating items: $800 500 300 213 87 Gain on sale of investments . $7 4) Loss on sale of equipment Income before taxes .. Income taxes Net income 3 90 27 $ 63 During 2014, Weaver sold some equipment for $20 that had cost $40 and on which there was accumulated depreciation of $16. In addition, the company sold long-term investments for $10 that had cost $3 when purchased several years ago. A cash dividend was paid during 2014 and the company repurchased $40 of its own stock. Weaver did not retire any bonds dur- ing 2014. Required: 1. Using the indirect method, determine the net cash provided by operating activities for 2014. 2. Using the information in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for 2014.

Explanation / Answer

1. Net Income 63.00
+ Loss on sale of equip $4.00
-Gain on sale of Invstmnt ($ 7.00)
Net cash used in operating will be $ 60.00
2. Net cash in Operating $ 60.00
Net cash used in Investing will be 0 as company doesn't have any disclosure for Assets and othe investing activities
-Repurchase of own Stock (40.00)
Net cash in Financing will be -40.00
Net cash used in year 2014 will be $20.00 ($60.00-40.00)

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