Comparative financial statements for Weaver Company follow: Weaver Company Compa
ID: 2531488 • Letter: C
Question
Comparative financial statements for Weaver Company follow:
Weaver Company
Comparative Balance Sheet
December 31, 2015 and 2014
2015 2014
Assets
Cash $ 8 $ 13
Accounts receivable 305 228
Inventory 155 194
Prepaid expenses 9 5
Total current assets 477 440
Property, plant, and equipment 509 430
Less accumulated depreciation (86) (70)
Net property, plant, and equipment 423 360
Long-term investments 29 35
Total assets $ 929 $ 835
Liabilities and Stockholders' Equity
Accounts payable $ 302 $ 224
Accrued liabilities 73 79
Income taxes payable 72 64
Total current liabilities 447 367
Bonds payable 196 172
Total liabilities 643 539
Common stock 162 201
Retained earnings 124 95
Total stockholders’ equity 286 296
Total liabilities and stockholders' equity $ 929 $ 835
Weaver Company
Income Statement
For the Year Ended December 31, 2015
Sales $ 754
Cost of goods sold 447
Gross margin 307
Selling and administrative expenses 222
Net operating income 85
Nonoperating items:
Gain on sale of investments $ 7
Loss on sale of equipment (2) 5
Income before taxes 90
Income taxes
22
Net income $ 68
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 $6 when purchased several years ago. A cash dividend was paid during 2015 and the company repurchased $39 of its own stock. Weaver did not retire any bonds during 2015.
1.
value:
10.00 points
Required information
Required:
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.)
References
eBook & Resources
WorksheetLearning Objective: 12-01 Classify cash inflows and outflows as relating to operating, investing, or financing activities.
Difficulty: 2 MediumLearning Objective: 12-02 Prepare a statement of cash flows using the indirect method to determine the net cash provided by operating activities.
Check my work
2.
value:
10.00 points
Required information
2.
Using the information in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for 2015. (List any deduction in cash and cash outflows as negative amounts.)
References
eBook & Resources
Explanation / Answer
1.
2.
Weaver Company Partial Statement of Cash Flows (Indirect Method) For the Year Ended December 31, 2015 Cash Flows from Operating Activities: Net income 68 Adjustments to reconcile net income to net cash provided by operations: Depreciation expense 26 Gain on sale of investments -7 Loss on sale of equipment 2 Increase in Accounts receivable -77 Decrease in Inventory 39 Increase in Prepaid expenses -4 Increase in Accounts payable 78 Decrease in Accrued liabilities -6 Increase in Income taxes payable 8 59 Net cash provided by operating activities 127Related Questions
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