During 2014, Weaver sold some equipment for $19 that had cost $30 and on which t

Question

     During 2014, 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 $12 that had cost $7 when purchased several years ago. A cash dividend was paid during 2014 and the company repurchased $41 of its own stock. Weaver did not retire any bonds during 2014.

Using the indirect method, determine the net cash for operating activities for 2014. (Negative amount should be entered with a minus sign.)

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.)

Comparative financial statements for Weaver Company follow:

Explanation / Answer

1.

Net Cash from operating activities

$ Net Income 63 -Gain on sale of equipments -5 + loss on sale of equipments 1 Depreciation provided 24 + tax provided 23 - decrease in accrued liabilites -5 + Increase in accounts payable 77 - Increase in prepaid expenses -2 + Decrease in inventory 38 - Increase in accounts receivable -75 Cash flow before tax 115 - Tax paid (63+23-74) -12 Cash flow from operating activities 127

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