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In: Accounting

Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This...

Comparative financial statements for Weaver Company follow:

Weaver Company
Comparative Balance Sheet
at December 31
This
Year
Last
Year
Assets
Cash and cash equivalents $ 31 $ 13
Accounts receivable 293 229
Inventory 156 196
Prepaid expenses 9 6
Total current assets 489 444
Property, plant, and equipment 504 425
Less accumulated depreciation (82 ) (70 )
Net property, plant, and equipment 422 355
Long-term investments 28 35
Total assets $ 939 $ 834
Liabilities and Stockholders' Equity
Accounts payable $ 303 $ 226
Accrued liabilities 73 78
Income taxes payable 74 64
Total current liabilities 450 368
Bonds payable 199 170
Total liabilities 649 538
Common stock 165 201
Retained earnings 125 95
Total stockholders’ equity 290 296
Total liabilities and stockholders' equity $ 939 $

834

Weaver Company
Income Statement
For This Year Ended December 31
Sales $ 755
Cost of goods sold 448
Gross margin 307
Selling and administrative expenses 221
Net operating income 86
Nonoperating items:
Gain on sale of investments $ 5
Loss on sale of equipment (2 ) 3
Income before taxes 89
Income taxes 23
Net income $ 66

During this year, Weaver sold some equipment for $19 that had cost $31 and on which there was accumulated depreciation of $10. In addition, the company sold long-term investments for $12 that had cost $7 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $36 of its own stock. This year Weaver did not retire any bonds.

Problem 13-7 Part 1

Required:

1. Using the indirect method, determine the net cash provided by/used in operating activities for this year. (List any deduction in cash and cash outflows as negative amounts.)

Weaver Company
Statement of Cash Flows—Indirect Method (partial)
0
$0

2. Using the information from Part 1, 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.)

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