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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Comparative financial statements for Weaver Company follow:
Weaver Company Comparative at December 31 |
||
This Year | Last Year | |
---|---|---|
Assets | ||
Cash | $ 17 | $ 12 |
293 | 229 | |
Inventory | 151 | 195 |
Prepaid expenses | 9 | 6 |
Total current assets | 470 | 442 |
Property, plant, and equipment | 511 | 432 |
Less |
(81) | (71) |
Net property, plant, and equipment | 430 | 361 |
Long-term investments | 26 | 33 |
Total assets | $ 926 | $ 836 |
Liabilities and |
||
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 |
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.
2. Using the information from Part 1, along with an analysis of the remaining balance sheet accounts, prepare a statement of
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