Comparative financial statements for Weaver Company follow:   Weaver Company Comparative Balance Sheet at December 31   This Year Last Year Assets     Cash $ 17 $ 12 Accounts receivable 293 229 Inventory 151 195 Prepaid expenses 9 6 Total current assets 470 442 Property, plant, and equipment 511 432 Less accumulated depreciation (81) (71) Net property, plant, and equipment 430 361 Long-term investments 26 33 Total assets $ 926 $ 836 Liabilities and Stockholders' Equity     Accounts payable $ 300 $ 225 Accrued liabilities 71 80 Income taxes payable 72 65 Total current liabilities 443 370 Bonds payable 196 172 Total liabilities 639 542 Common stock 163 200 Retained earnings 124 94 Total stockholders’ equity 287 294 Total liabilities and stockholders' equity $ 926 $ 836   Weaver Company Income Statement For This Year Ended December 31 Sales   $ 754 Cost of goods sold   447 Gross margin   307 Selling and administrative expenses   221 Net operating income   86 Nonoperating items:     Gain on sale of investments $ 5   Loss on sale of equipment (2) 3 Income before taxes   89 Income taxes   22 Net income   $ 67

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Comparative financial statements for Weaver Company follow:

 

Weaver Company
Comparative Balance Sheet
at December 31
  This Year Last Year
Assets    
Cash $ 17 $ 12
Accounts receivable 293 229
Inventory 151 195
Prepaid expenses 9 6
Total current assets 470 442
Property, plant, and equipment 511 432
Less accumulated depreciation (81) (71)
Net property, plant, and equipment 430 361
Long-term investments 26 33
Total assets $ 926 $ 836
Liabilities and Stockholders' Equity    
Accounts payable $ 300 $ 225
Accrued liabilities 71 80
Income taxes payable 72 65
Total current liabilities 443 370
Bonds payable 196 172
Total liabilities 639 542
Common stock 163 200
Retained earnings 124 94
Total stockholders’ equity 287 294
Total liabilities and stockholders' equity $ 926 $ 836

 

Weaver Company
Income Statement
For This Year Ended December 31
Sales   $ 754
Cost of goods sold   447
Gross margin   307
Selling and administrative expenses   221
Net operating income   86
Nonoperating items:    
Gain on sale of investments $ 5  
Loss on sale of equipment (2) 3
Income before taxes   89
Income taxes   22
Net income   $ 67

 

During this year, 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 $12 that had cost $7 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $37 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. (List any deduction in cash and cash outflows as negative amounts.)

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