The tonowing Itormation appiwes to the questlons displayed below Comperetive fin

Question

The tonowing Itormation appiwes to the questlons displayed below Comperetive financiel statements for Weaver Company folow: 0.00 points Weaver Company Comperetihe Beence Sheet December 31 2015 and 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 2015. (Llat any deduction In caeh and caah outrlows 88 negative amounte. 2015 2014 5 012 Accounts recelvable Prepald expenses Total current essets Property, plant, and equipment Statement of Caeh Flows - Indirect Method For This Year Ended December 31, 2015 Operating activites Less eccumulated dleprecletion Net property. plant, and equlpment Long term Investmet Total azzets o convert net income to cash basis 5926 833 Liablities and Stockholders Equity Accounts payable Accruedl ebllties Income taxes payable $ 300 $225 74 Total current liabl es Bonds peyable Total abilties Common stock Retained earning Investng activities Total stockholders eauty 201 295 Total lebilities and stockholdere equity 5926 333 Weaver Company Income Statement Forthe Year Ended December 31 2015 753 ales Cost of goods sold Gross mergin 219 Net opereting Income Nonopereting tema: ash and cash equivalents Gein on sale of Investment Lozs on sele of equipment 2) 3 Ending cash and cash equivalents Income before texes 92 Net Income 5 60 During 2015, Weaver cold some equlpment for $10 that hed cost $30 and on which there we: accumul eted depreciation of $10. In eddltion, the compeny sold longterm Investments for $12 thet hed cost 57 when purchased several years ago. A cash cividend was pald during 2015 and the company repurchased 541 of ts own stock. Weaver did not retire any bonds dluring 2015

Explanation / Answer

Weaver company

Cash flow statement

For the year ended december 31 ,2015

35

Weaver company

Cash flow statement

For the year ended december 31 ,2015

Cash Flow from operating activity Net Income 68 Adjustment to reconcile net income to cash flow Gain on sale of investment (5) loss on sale of equipment 2 Depreciation [ending accumulated dep +10 on asset sold -72 beginning acc dep] 24 Increase in accounts receivable [308-229] (79) Decrease in inventory [195-160]

35

Increase in prepaid expense [8-5] (3) Increase in accounts payable [300-225) 75 decrease in accrued liabilities[ 79-72] (7) Increase in income tax payable [74-64] 10 52 Net cash provided by operaing activity 120 cash flow from investing activity sale of long term investment 12 sale of equipment 18 Purchase of plant ,property and equipment [511+30sold -432] (109) net cash used by investing activity (79) cash flow from financing activity Bond payable issed [199-170] 29 common stock repurchased (41) dividend paid [beginning Retained earning 94 +68net income -121 ending] (41) net cash from financing activity (53) Increase/(decrease) in cash (12) Beginning cash 12 Ending cash balance 0

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