Question

Problem 14-7 Prepare a Statement of Cash Flows (LO14-1, LO14-2] [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 Year Last Year $ 12 229 $ 4 308 156 9 477 512 (85) 427 195 6 442 433 (71) 362 32 $836 26 $ 930 Assets Cash 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 $224 64 $ 301 73 73 447 196 643 162 125 287 $ 930 171 538 201 97 298 $836

Answer 1

B2 A B E $ 67 Weaver Company Cash flow from operating activities (indirect method) for the year ended December 31 Net Income adjustements to reconcile net income to net cash provided by operating activities: depreciation $ 24 gain on sale of investments loss on sale of equipment $2 change in current operating assets and liabilities increase in accounts receivable -$ 79 decrease in inventories increase in prepaid expenses increase in accounts payable decrease in accrued liabilities increase in income taxes payable Net Cash flow from operating activities $ 20 $ 39 is $9 $ 37 $ 124

B19 X for 2 AB Weaver Company cash flow statement for the year ended December 31 Net Cash flow from operating activities $ 124 Cash flow from investing activities: cash used for purchase of equipment cash received from sale of equipment sale of long term investments Net Cash flow from investing activities -$ 110 $ 19 $ 12 -$ 79 Cash flow from financing activities: issue of bonds payable purchase of treasury stock cash dividend paid Net Cash flow from financing activities $ 25 $ 39 $ 39 -$53 net change in cash beginning cash and cash equivalents ending cash and cash equivalents $8 $12 $4

For formulas and calculations, refer to the image below -

X fic 1 B Weaver Company Cash flow from operating activities (indirect method) for the year ended December 31 Net Income adjustements to reconcile net income to net cash provided by operating activities: depreciation =85+10-71 gain on sale of investments loss on sale of equipment =D7+D8+D9 change in current operating assets and liabilities increase in accounts receivable =229-308 decrease in inventories =195-156 ncrease in prepaid expenses =6-9 increase in accounts payable =301-224 decrease in accrued liabilities =73-79 increase in income taxes payable =73-64 =SUM(D11:016) Net Cash flow from operating activities =E5+E9+E16

B19 X for 2 Weaver Company cash flow statement for the year ended December 31 Net Cash flow from operating activities --(512+31-433) Cash flow from investing activities: cash used for purchase of equipment cash received from sale of equipment sale of long term investments Net Cash flow from investing activities -19 =32-26+6 =SUM(D26:D28) =196-171 Cash flow from financing activities: issue of bonds payable purchase of treasury stock cash dividend paid Net Cash flow from financing activities -39 =-(97+67-125) =D32+D33+D34 =E23+E29+E35 net change in cash beginning cash and cash equivalents ending cash and cash equivalents =E37+E38

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