Question

Weaver Company Comparative Balance Sheet at December31 Last This Year Year Assets Cash Accounts receivable Inventory Prepaid expense:s Total current assets Property, plant, and equipment $9 15 240 175 6 436 470 85 385 19 $1,017 840 340 125 10 484 610 93 517 16 Less accumulated depreciation Net property, plant, and equipment Long-term investments Total assets 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 60 40 410 290 700 210 107 317 $1,017 $ 310 230 72 34 336 180 516 250 74 324 840

Answer 1

* Requirement 1

Statement of Cash Flows
Net Income		$                              63
Adjustments to convert net income to a cash basis:
Decrease in Inventory	$                  50
Increase in Prepaid expenses	$                  (4)
Loss on sale of Equipment	$                     4
Gain on Sale of Investments	$                  (7)
Increase in accounts payable	$                  80
Increase in income taxes payable	$                     6
Increase in accounts receivables	$              (100)
Decrease in accrued liabilities	$                (12)
Depreciation Expense	$                  24
[Leave it blank, or choose any option available for leaving black alternative]	$0	$                              41
Net Cash provided by Operating activities		$                           104

No.	Conceptual Notes
1	Cash Flow Statement reflects the Cash Inflows and Outflows during a period of time.
2	Effects of Non - Cash Transaction are adjusted from Net Income.
3	Depreciation Expense, Amortisation expenses are Added back to Net Income in Cash Flow Statement.
4	Decrease in Current Assets OR Increase in Current Liabilities are ADDED to Net Income
5	Increase in Current Assets OR Decrease in Current Liabilities are DEDUCTED from Net Income