PROBLEM 14-7 Prepare a statement of Cash Flows (L014-1, L014-2] Comparative financial statements for Weaver Company follow Weaver Company Comparative Balance Sheet December 31, 2014 and 2013 2014 2013 Assets Cash ........ 340 484 Accounts receivable ................. Inventory ........................... Prepaid expenses ..................... Total current assets .................... Property, plant, and equipment ........... Less accumulated depreciation ......... Net property, plant, and equipment ....... Long-term investments .......... Total assets ..... *******41118 8801981123382982513 $ Liabilities and Stockholders' Equity Accounts payable ... Accrued liabilities Income taxes payable ......... Total current liabilities ........ Bonds payable .................. Total liabilities ........................ Common stock ....................... Retained earnings ................... Total stockholders' equity .............. Total liabilities and stockholders' equity .... 310 700 210 107 Weaver Company Income Statement For the Year Ended December 31, 2014 $800 500 300 213 Sales ......... Cost of goods sold .................. Gross margin ........... Selling and administrative expenses ..... Net operating income ....... Nonoperating items: Gain on sale of investments ......... Loss on sale of equipment .......... Income before taxes ................. Income taxes . . . . . . . . . ... Net income ...................... During 2014, Weaver sold some equipment for $20 that had cost $40 and on which there was accumulated depreciation of $16. In addition, the company sold long-term investments for $10 that had cost $3 when purchased several years ago. A cash dividend was paid during 2014 and the company repurchased $40 of its own stock. Weaver did not retire any bonds dur- ing 2014 Required: 1. Using the indirect method, determine the net cash provided by operating activities for 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 2014.
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[The following information applies to the questions displayed below.]
Comparative financial statements for Weaver Company follow:
| Weaver Company Comparative Balance Sheet at December 31 | ||||||||
| This Year | Last Year | |||||||
| Assets | ||||||||
| Cash | $ | 2 | $ | 12 | ||||
| Accounts receivable | 308 | 230 | ||||||
| Inventory | 157 | 194 | ||||||
| Prepaid expenses | 9 | 5 | ||||||
| Total current assets | 476 | 441 | ||||||
| Property, plant, and equipment | 514 | 436 | ||||||
| Less accumulated depreciation | (86 | ) | (72 | ) | ||||
| Net property, plant, and equipment | 428 | 364 | ||||||
| Long-term investments | 26 | 32 | ||||||
| Total assets | $ | 930 | $ | 837 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Accounts payable | $ | 302 | $ | 225 | ||||
| Accrued liabilities | 73 | 77 | ||||||
| Income taxes payable | 71 | 65 | ||||||
| Total current liabilities | 446 | 367 | ||||||
| Bonds payable | 195 | 172 | ||||||
| Total liabilities | 641 | 539 | ||||||
| Common stock | 162 | 201 | ||||||
| Retained earnings | 127 | 97 | ||||||
| Total stockholdersâ equity | 289 | 298 | ||||||
| Total liabilities and stockholders' equity | $ | 930 | $ | 837 | ||||
| Weaver Company Income Statement For This Year Ended December 31 | ||||||
| Sales | $ | 753 | ||||
| Cost of goods sold | 445 | |||||
| Gross margin | 308 | |||||
| Selling and administrative expenses | 222 | |||||
| Net operating income | 86 | |||||
| Nonoperating items: | ||||||
| Gain on sale of investments | $ | 7 | ||||
| Loss on sale of equipment | (1 | ) | 6 | |||
| Income before taxes | 92 | |||||
| Income taxes | 23 | |||||
| Net income | $ | 69 | ||||
During this year, Weaver sold some equipment for $19 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. Weaver paid a cash dividend this year and the company repurchased $39 of its own stock. This year Weaver did not retire any bonds.
Required:
1. Using the indirect method, determine the net cash provided by/used in operating activities for this year. Please provide the whole Statement of Cash Flows (using Indirect Method) for Weaver Company.
Problem 12-7A Prepare a Statement of Cash Flows [LO12-1, LO12-2]
[The following information applies to the questions displayed below.]
| Comparative financial statements for Weaver Company follow: |
| Weaver Company Comparative Balance Sheet December 31, 2015 and 2014 | ||||
| 2015 | 2014 | |||
| Assets | ||||
| Cash | $ | -3 | $ | 12 |
| Accounts receivable | 309 | 230 | ||
| Inventory | 156 | 194 | ||
| Prepaid expenses | 9 | 5 | ||
| Total current assets | 471 | 441 | ||
| Property, plant, and equipment | 516 | 436 | ||
| Less accumulated depreciation | (86) | (71) | ||
| Net property, plant, and equipment | 430 | 365 | ||
| Long-term investments | 23 | 30 | ||
| Total assets | $ | 924 | $ | 836 |
| Liabilities and Stockholders' Equity | ||||
| Accounts payable | $ | 301 | $ | 225 |
| Accrued liabilities | 73 | 80 | ||
| Income taxes payable | 73 | 64 | ||
| Total current liabilities | 447 | 369 | ||
| Bonds payable | 197 | 172 | ||
| Total liabilities | 644 | 541 | ||
| Common stock | 162 | 202 | ||
| Retained earnings | 118 | 93 | ||
| Total stockholdersâ equity | 280 | 295 | ||
| Total liabilities and stockholders' equity | $ | 924 | $ | 836 |
| Weaver Company Income Statement For the Year Ended December 31, 2015 | ||||
| Sales | $ | 754 | ||
| Cost of goods sold | 448 | |||
| Gross margin | 306 | |||
| Selling and administrative expenses | 222 | |||
| Net operating income | 84 | |||
| Nonoperating items: | ||||
| Gain on sale of investments | $ | 5 | ||
| Loss on sale of equipment | (1) | 4 | ||
| Income before taxes | 88 | |||
| Income taxes | 23 | |||
| Net income | $ | 65 | ||
During 2015, Weaver sold some equipment for $19 that had cost $30 and on which there was accumulated depreciation of $10. In addition, the company sold long-term investments for $12 that had cost $7 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.
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.)
