Question

Comparative financial statements for Weaver Company follow:

Weaver Company Comparative Balance Sheet December 31, 2015 and 2014
	2015		2014
Assets
Cash	$	3	$	11
Accounts receivable		309		229
Inventory		158		196
Prepaid expenses		8		5
Total current assets		478		441
Property, plant, and equipment		513		433
Less accumulated depreciation		(85)		(71)
Net property, plant, and equipment		428		362
Long-term investments		25		32
Total assets	$	931	$	835
Liabilities and Stockholders' Equity
Accounts payable	$	304	$	226
Accrued liabilities		72		80
Income taxes payable		73		65
Total current liabilities		449		371
Bonds payable		198		171
Total liabilities		647		542
Common stock		160		200
Retained earnings		124		93
Total stockholders’ equity		284		293
Total liabilities and stockholders' equity	$	931	$	835

Weaver Company Income Statement For the Year Ended December 31, 2015
Sales			$	754
Cost of goods sold				447
Gross margin				307
Selling and administrative expenses				218
Net operating income				89
Nonoperating items:
Gain on sale of investments	$	6
Loss on sale of equipment		(1)		5
Income before taxes				94
Income taxes				23
Net income			$	71

During 2015, Weaver sold some equipment for $19 that had cost $30 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. A cash dividend was paid during 2015 and the company repurchased $40 of its own stock. Weaver did not retire any bonds during 2015.

Required:
1.	Using the indirect method, determine the net cash provided by/used by operating activities for 2015. (Negative amount should be entered with a minus sign.)

2.	Using the information in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for 2015. (List any deduction in cash and cash outflows as negative amounts.)

	Weaver Company Statement of Cash Flows - Indirect Method For This Year Ended December 31, 2015 Operating activities: Adjustments to convert net income to cash basis: 0 0 Investing activities: 0 Financing activities: 0 0 Beginning cash and cash equivalents Ending cash and cash equivalents $0

Answer 1

Cash Flow from Operating Activity :-
Net Income	71
Adjustment for Non-cash & Non Operating Activities :-
Loss on sale of equipment	1
Gain on sale of investment	(6)
Depreciation (85-71+10)	24
Adjustment for Current Asset/Liabilities :-
Increase A/c Receivable	(80)
Decrease Inventory	38
Increase Prepaid Exp	(3)
Increase A/c Payable	78
Decrease Accrued Liab	(8)
Increase Income Tax Payable	8
Cash Flow from Operating Activity (A)	123	123
Cash Flow from Investing Activity :-
Equipment Sold	19
Long term Investment sold	13
PPE Purchase	(110)
Cash Flow from Investing Activity (B)	(78)	(78)
Cash Flow from Operating Activity :-
Cash Dividend Paid	(40)
Retire Own common stock	(40)
Bond Payable Issue	27
Cash Flow from Operating Activity (C)	(53)	(53)
Total Cash Flow (A+B+C)		(8)
Beginning Cash Balance		11
Ending Cash balance		3