Question

Managerial Accounting:

Prepare a statement of cash flows for this year.

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 $ 10 300 159 བློ་འཆཎ པas an Assets Cash and cash equivalents 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 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 $ 302 ཋ བཀཋ ས 2 Weaver Company Income Statement Por This Year Ended December 31 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 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 $13 that had cost $6 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 in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for this year. (List any deduction in cash and cash outflows as negative amounts.)

Answer 1

Weaver Company Income Statement For the Year Ended December 31, 2014 Sales Cost of goods cold Gross margin 303 Selling and administrative expenses 221 Net operating income Nonoperating items: Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes Net income Cash Cash Flow statement For the year ended dec 31 Operating activities Net Income 63 Adjustmetns to convert net income to cash basis Depriciation(14+10) Increase in accounts receivable Decrease in inventory Loss on sale of equipment Increase in accounts payable Decrease in accrued liabilties Increase in income tax payable Gain on sale of investment Increase in prepaid expenses Net cash provided by operating activities 18 Investing activities Proceeds from sale of equipment Proceeds from sale of long term investments Addition in plant and equipment(79+30) Net cash used in investing activities 13 -109 25 -37 -37 Financing activities Issuance of bonds payable Decrease in common stock cash dividends Net cash used in financing activities Net increase in cash Add:opening cash balance Closing cash balance

Weaver Company Comparative Balance Sheet December 31, 2014 and 2013 Assets Cash Accounts receivable Inventory Prepaid expenses Latest Year 10 300 159 8 Last Year -2 7 2 -371 2 SIN 2 1 121 28 96 61 Total current assets 477 442 Property, plant & equipment Less accum. depreciation 513 -85 434 -71 -14 Net property, plant & equipment 428 363 Long-term investments 24 - 6 30 Total assets 929 835 Liabilities and Stockholders' Equity Accounts payable Accrued liabilities Income taxes payable 302 71 741 77 -7 10 225 78 4 6 367 Total current liabilities Bonds payable 447 1961 25 171 Total liabilities 643 538 202 Common stock Retained earnings 165 121) -37 261 95 Total stockholders' equity 286 2 97|| Total liabilities and stockholders' equity 929 835