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le Edit View History Bookmarks Tools Window Help ?? https:/hewco Help Save mework #11 Required information 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 art 2 of 2 Conparative Balance Sheet at December 31 Thia Year Last Year $7 12 230 306 156 Accounts receivable Inventory Prepaid expenses Total eurrent aasets Property, plane, and equipment 196 428 Less aceunulated depreciation Net property, piant, and equipment 293S 837 Total assets 8 928 Liabilities and Stockholders' Equity ecount able 304 $226 75 Incone taxes payable Total eurrent liabilitien Bonds pavable 170 ?Prev 11 of 12 lll Next MacBook Pro 888 , 5 7 9Explanation / Answer
1) Weaver Company
Statement of Cash Flows
For This year Ended December 31 (Amounts in $)
Operating Activities Net Income 63 Adjustments to reconcile net income to operating cash flows Add: Depreciation expense (End bal+Acc. Dep. on equipment sold-Beg. bal) (85+10-70) 25 Less: Gain on sale of Investments (6) Add: Loss on sale of equipment 2 Less: Increase in Accounts Receivable (306-230) (76) Add: Decrease in Inventory (156-196) 40 Less: Increase in Prepaid Expenses (9-6) (3) Add: Increase in Accounts Payable (304-226) 78 Less: Decrease in Accrued Liabilities (71-80) (9) Add: Increase in Income Taxes Payable (75-65) 10 61 Net Cash Provided by Operating Activities (A) 124 Investing Activities Sale of Investments 12 Sale of Equipment 19 Purchase of Equipment (End bal+cost of equip sold-Beg bal) (506+31-428) (109) Net Cash Used for Investing Activities (B) (78) Financing Activities Issue of Bonds Payable (197-170) 27 Repurchase of Common Stock (39) Dividends Paid (Beg. bal retained earnings+Net Income-End bal) (96+63-120) (39) Net Cash Used for Financing Activities (C) (51) Net Increase/(Decrease) in cash and cash equivalents (A+B+C) (5) Add: Beginning cash and cash equivalents 12 Ending cash and cash equivalents 7Related Questions
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