Comparative financial statements for Weaver Company follow: During 2015, Weaver
ID: 2516624 • Letter: C
Question
Comparative financial statements for Weaver Company follow:
During 2015, Weaver sold some equipment for $19 that had cost $31 and on which there was accumulated depreciation of $10. In addition, the company sold long-term investments for $13 that had cost $6 when purchased several years ago. A cash dividend was paid during 2015 and the company repurchased $40 of its own stock. Weaver did not retire any bonds during 2015.
Part 1
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 CompanyComparative Balance Sheet
December 31, 2015 and 2014 2015 2014 Assets Cash $ 14 $ 11 Accounts receivable 306 231 Inventory 157 194 Prepaid expenses 8 6 Total current assets 485 442 Property, plant, and equipment 506 427 Less accumulated depreciation (86) (71) Net property, plant, and equipment 420 356 Long-term investments 28 34 Total assets $ 933 $ 832 Liabilities and Stockholders' Equity Accounts payable $ 305 $ 224 Accrued liabilities 71 78 Income taxes payable 74 65 Total current liabilities 450 367 Bonds payable 199 170 Total liabilities 649 537 Common stock 161 201 Retained earnings 123 94 Total stockholders’ equity 284 295 Total liabilities and stockholders' equity $ 933 $ 832
Explanation / Answer
Answer:
Net Income = $69
Increase in Account receivable = ($75)
Decrease in inventory = $37
Depreciation = $15
Increase in prepaid expense = ($2)
Increase in accounts payable = $81
Decrease in accrued liabilities = ($7)
Net cash flow from Operating activities = $118
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