Question

155 Problem 13-7 Prepare a statement of Cash Flows (L013-1, L013-2) 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 Last Year Year Assets Cash and cash equivalents $ 18 $ 11 Accounts receivable 299 230 Inventory 195 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 $ 302 $225 Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity *** 01e02 111 | arte la Weaver Company Income Statement For This Year Ended December 31 Sales $ 751 Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items! Gain on sale of investments $ 6 Loss on sale of equipment (2) 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 $12 that had cost 56 when purchased several years ago Weaver paid a cash dividend this year and the company repurchased $35 of its own stock. This year Weaver did not retire any bonds

Answer 1

From the information provided, I have prepared Net cash flow provided by/used in operating activities for this year of Weaver Company.

Weaver Company Statement of Cash Flows - Indirect Method Particulars Amount($) Amount($) $64 Net Income Adjustments to convert net income to a cash basis: Add Depreciation (Note 1) Less Gain on sale of investments Add Loss of sale of equipment Less Increase in Accounts Receivable Add Decrease in Inventory Less Increase in Prepaid Expenses Add increase in Accounts Payables Less Decrease in Accrued Expenses Add increase in Income Tax Payables Net cash provided by Operating Activities for this year 66 $130 Notel: Calculation of Depreciation for the year Beginning Accumulated Depreciation Less Accumulated Depreciation of equipment sold this year Less Closing Accumulated Depreciation Depreciation for the year