During 2015, Weaver sold some equipment for $18 that had cost $31 and on which t

Question

     During 2015, 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 $6 when purchased several years ago. A cash dividend was paid during 2015 and the company repurchased $38 of its own stock. Weaver did not retire any bonds during 2015.

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.)

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.)

Explanation / Answer

Indirect Method Cash Flow from Operating Activities Net Income 71 Less: Gain on Sale -7 Add: Loss on sale of equipment 3 Depreciation 23 Increase in Accounts Receivable -76 Decrease in Inventory 37 Increase in Prepaid Expenses -2 Increase in Accounts Payable 77 Decrease in Accrued Liabilities -6 Increase in Tax Payable 8 Cash Flow from Operating Activities 128 Cash Flow from Investing Activities Equpment Sold 18 Investments sold 13 Bonds Payable 29 60 Cash Flow from Financing Activities Stock Repurchased -38 Dividend -38 (95+71-128) Cash Flow from Financing Activities -76 Net Cash Change 1 Opening Cash 12 Ending Cash 13

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.