Question

Weaver Company Comparative Balance Sheet at December 31 This Year Last Year $ 9 291 158 9 467 514 $ 12 230 195 6 443 434 (72) 362 30 $835 (80) 434 23 $ 924 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 $ 303 70 73 446 196 642 160 122 282 $224 80 65 369 171 540 201 94 295 $835 $ 924

Answer 1

1.)	Particulars	Amount in $
	Cash flows from operating activities
	Net Income	69
	Adjustments to arrive cash flow from operating activities:
	Depreciation expense ( 80 - 72 + 10 )	18
	Loss on sale of Equipment	2
	Gain on sale of Investments	-5
	Increase in accounts receivables ( 230 - 291 )	-61
	Decrease in Inventory ( 195 - 158 )	37
	Increase in prepaid Expenses ( 6- 9 )	-3
	Increase in accounts payable ( 303 - 224 )	79
	Decrease in accrued liabilties ( 70 - 80 )	-10
	Increase in Income Tax payable ( 73 - 65 )	8
	Net Cash flow from operating activities	134
2.)	Net Cash flow from operating activities	134
	Cash flows from investing activities
	Sale of Equipment	18
	Purchase of Property, Plant & Equipment ( 514 - 434 + 30 )	-110
	Sale of Long term investments	12
	Net Cash flow from Investing activities	-80
	Cash flows from financing activities
	Repurchase of Own Stock	-41
	Proceeds from issue of Bond Payable ( 196 - 171 )	25
	Payment of cash dividends ( 94 + 69 - 122 )	-41
	Net Cash flows from financing activities	-57
	Net increase(decrease) in cash and cash equivalents (A)	-3
	Cash and cash equivalents at beginning of period (B)	12
	Cash and cash equivalents at end of period =A+B	9
		-