Question

Problem 13-7 Prepare a Statement of Cash Flows [LO13-1, LO13-2]

[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
Assets
Cash and cash equivalents	$	20			$	13
Accounts receivable		291				230
Inventory		159				196
Prepaid expenses		9				6
Total current assets		479				445
Property, plant, and equipment		507				428
Less accumulated depreciation		(82	)			(70	)
Net property, plant, and equipment		425				358
Long-term investments		25				32
Total assets	$	929			$	835
Liabilities and Stockholders' Equity
Accounts payable	$	301			$	226
Accrued liabilities		71				79
Income taxes payable		74				65
Total current liabilities		446				370
Bonds payable		199				171
Total liabilities		645				541
Common stock		161				200
Retained earnings		123				94
Total stockholders’ equity		284				294
Total liabilities and stockholders' equity	$	929			$	835

Weaver Company Income Statement For This Year Ended December 31
Sales					$	754
Cost of goods sold						445
Gross margin						309
Selling and administrative expenses						220
Net operating income						89
Nonoperating items:
Gain on sale of investments	$	6
Loss on sale of equipment		(3	)			3
Income before taxes						92
Income taxes						24
Net income					$	68

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 $39 of its own stock. This year Weaver did not retire any bonds.

Brewer_8e_Rechecks_2020_01_27

Problem 13-7 Part 1

Required:

1. Using the indirect method, determine the net cash provided by/used in operating activities for this year.

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.

please show ENTIRE indirect method and ENTIRE statement of cash flows.. thank you

Answer 1