Comparative financial statements for Weaver Company follow: During 2015, Weaver

Question

Comparative financial statements for Weaver Company follow:

     During 2015, 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 $7 when purchased several years ago. A cash dividend was paid during 2015 and the company repurchased $38 of its own stock. Weaver did not retire any bonds during 2015

Using the indirect method, determine the net cash provided by/used by operating activities for 2015. (Negative amount should be entered with a minus sign.)

Weaver Company
Comparative Balance Sheet
December 31, 2015 and 2014 2015 2014   Assets   Cash $ 7     $ 11       Accounts receivable 305     230       Inventory 155     195       Prepaid expenses 8     6       Total current assets 475     442       Property, plant, and equipment 513     433           Less accumulated depreciation (86)    (71)      Net property, plant, and equipment 427     362       Long-term investments 26     33       Total assets $ 928     $ 837       Liabilities and Stockholders' Equity   Accounts payable $ 302     $ 225       Accrued liabilities 71     79       Income taxes payable 73     63       Total current liabilities 446     367       Bonds payable 198     172       Total liabilities 644     539       Common stock 163     201       Retained earnings 121     97       Total stockholders’ equity 284     298       Total liabilities and stockholders' equity $ 928     $ 837    

Explanation / Answer

Particulars Amount (in $) Net Income 62.00 Add: Non-Cash Expenses:           Accumulated Depreciation 25.00 Add: Non-Operating Losses:           Loss on sale of equipment 2.00 Less: Non-Operating Gains:            Gain on sale of investments -6.00 Add: Decrease in Current Assets:            Cash 4.00           Inventory 40.00 Less: Increase in Current Assets            Accounts Receivable -75.00            Prepaid Expenses -2.00 Add: Increase in Current Liabilities            Accounts Payable 77.00            Income taxes payable 10.00 Less: Decrease in Current Liabilities            Accrued Liabilities -8.00 Net Cash Flow from Operating Activities 129.00

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