Comparative financial statements for Weaver Company follow: ...
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Accounting
Comparative financial statements for Weaver Company follow:
Weaver Company Comparative Balance Sheet December 31, 2014 and 2013
2014
2013
Assets
Cash
$
6
$
12
Accounts receivable
307
229
Inventory
158
195
Prepaid expenses
9
5
Total current assets
480
441
Property, plant, and equipment
501
423
Less accumulated depreciation
(85)
(70)
Net property, plant, and equipment
416
353
Long-term investments
29
35
Total assets
$
925
$
829
Liabilities and Stockholders' Equity
Accounts payable
$
301
$
225
Accrued liabilities
72
77
Income taxes payable
73
64
Total current liabilities
446
366
Bonds payable
200
171
Total liabilities
646
537
Common stock
161
200
Retained earnings
118
92
Total stockholders equity
279
292
Total liabilities and stockholders' equity
$
925
$
829
Weaver Company Income Statement For the Year Ended December 31, 2014
Sales
$
752
Cost of goods sold
449
Gross margin
303
Selling and administrative expenses
218
Net operating income
85
Nonoperating items:
Gain on sale of investments
$
7
Loss on sale of equipment
(2)
5
Income before taxes
90
Income taxes
25
Net income
$
65
During 2014, Weaver sold some equipment for $18 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 $6 when purchased several years ago. A cash dividend was paid during 2014 and the company repurchased $39 of its own stock. Weaver did not retire any bonds during 2014.
Required:
1.
Using the indirect method, determine the net cash for operating activities for 2014. (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 2014. (List any deduction in cash and cash outflows as negative amounts.)
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