Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet...

80.2K

Verified Solution

Question

Accounting

Comparative financial statements for Weaver Company follow:

Weaver Company Comparative Balance Sheet at December 31
This Year Last Year
Assets
Cash $ -15 $ 12
Accounts receivable 338 231
Inventory 151 194
Prepaid expenses 8 5
Total current assets 482 442
Property, plant, and equipment 507 428
Less accumulated depreciation 81 70
Net property, plant, and equipment 426 358
Long-term investments 26 32
Total assets $ 934 $ 832
Liabilities and Stockholders' Equity
Accounts payable $ 304 $ 224
Accrued liabilities 71 79
Income taxes payable 72 63
Total current liabilities 447 366
Bonds payable 199 170
Total liabilities 646 536
Common stock 161 201
Retained earnings 127 95
Total stockholders equity 288 296
Total liabilities and stockholders' equity $ 934 $ 832

Weaver Company Income Statement For This Year Ended December 31
Sales $ 754
Cost of goods sold 446
Gross margin 308
Selling and administrative expenses 218
Net operating income 90
Nonoperating items:
Gain on sale of investments $ 7
Loss on sale of equipment (1) 6
Income before taxes 96
Income taxes 24
Net income $ 72

During this year, 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 $6 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.

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.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students