Comparative financial statements for Weaver Company follow:   Weaver Company Comparative Balance Sheet at December 31   This Year Last Year Assets     Cash $ 13 $ 13 Accounts receivable 291 228 Inventory 153 195 Prepaid expenses 9 6 Total current assets 466 442 Property, plant, and equipment 513 433 Less accumulated depreciation (82) (72) Net property, plant, and equipment 431 361 Long-term investments 26 33 Total assets $ 923 $ 836 Liabilities and Stockholders' Equity     Accounts payable $ 301 $ 224 Accrued liabilities 73 79 Income taxes payable 71 65 Total current liabilities 445 368 Bonds payable 195 170 Total liabilities 640 538 Common stock 162 202 Retained earnings 121 96 Total stockholders’ equity 283 298 Total liabilities and stockholders' equity $ 923 $ 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   220 Net operating income   87 Nonoperating items:     Gain on sale of investments $ 5   Loss on sale of equipment (2) 3 Income before taxes   90 Income taxes   25 Net income   $ 65   During this year, 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 $12 that had cost $7 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $40 of its own stock. This year Weaver did not retire any bonds.   2. Using the information from Part 1, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for this year.

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 $ 13 $ 13
Accounts receivable 291 228
Inventory 153 195
Prepaid expenses 9 6
Total current assets 466 442
Property, plant, and equipment 513 433
Less accumulated depreciation (82) (72)
Net property, plant, and equipment 431 361
Long-term investments 26 33
Total assets $ 923 $ 836
Liabilities and Stockholders' Equity    
Accounts payable $ 301 $ 224
Accrued liabilities 73 79
Income taxes payable 71 65
Total current liabilities 445 368
Bonds payable 195 170
Total liabilities 640 538
Common stock 162 202
Retained earnings 121 96
Total stockholders’ equity 283 298
Total liabilities and stockholders' equity $ 923 $ 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   220
Net operating income   87
Nonoperating items:    
Gain on sale of investments $ 5  
Loss on sale of equipment (2) 3
Income before taxes   90
Income taxes   25
Net income   $ 65

 

During this year, 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 $12 that had cost $7 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $40 of its own stock. This year Weaver did not retire any bonds.

 

2. Using the information from Part 1, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for this year.

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