Question

Comparative financial statements for Weaver Company follow:

Weaver Company Comparative Balance Sheet at December 31
	This Year				Last Year
Assets
Cash and cash equivalents	$	15			$	13
Accounts receivable		291				230
Inventory		155				195
Prepaid expenses		9				5
Total current assets		470				443
Property, plant, and equipment		511				431
Less accumulated depreciation		(82	)			(71	)
Net property, plant, and equipment		429				360
Long-term investments		27				34
Total assets	$	926			$	837
Liabilities and Stockholders' Equity
Accounts payable	$	304			$	225
Accrued liabilities		70				78
Income taxes payable		73				65
Total current liabilities		447				368
Bonds payable		196				172
Total liabilities		643				540
Common stock		161				201
Retained earnings		122				96
Total stockholders’ equity		283				297
Total liabilities and stockholders' equity	$	926			$	837

Weaver Company Income Statement For This Year Ended December 31
Sales					$	750
Cost of goods sold						447
Gross margin						303
Selling and administrative expenses						218
Net operating income						85
Nonoperating items:
Gain on sale of investments	$	6
Loss on sale of equipment		(3	)			3
Income before taxes						88
Income taxes						22
Net income					$	66

During this year, Weaver sold some equipment for $18 that had cost $31 and on which there was accumulated depreciation of $10. In addition, the company sold long-term investments for $13 that had cost $7 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $40 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

Problem 13-7 Part 2

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.)

	Weaver Company Statement of Cash Flows For This Year Ended December 31 Operating activities: Investing activities: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents

Answer 1