Required information [The following information applies to the questions display

Question

Required information [The following information applies to the questions displayed below.] Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment 306 159 $ 11 230 195 Less accumulated depreciation Net property, plant, and equipment Long-term investments Total assets 482 507 85 422 26 $ 930 442 429 71 358 32 $832 Liabilities and Stockholders' Equity Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Totalliabilities Common stock Retained earnings Total stockholders' equity $ 304 71 72 447 198 645 163 122 285 $ 930 $224 78 64 366 172 538 200 94 294 $832 Total liabilities and stockholders' equity

Explanation / Answer

Weaver Company Statement of Cash Flow For the year ended December 31 Cash flows from operating activities Net income $                                              65.00 Adjustments to net income     Depreciation=($85-$71) $                         14.00     Gain on sale of Investment $                         (6.00)     Loss on Sales of Equipment $                           2.00     Increase in accounts receivable=($306-$230) $                      (76.00)     Decrease in inventories=($195-$159) $                         36.00     Increase in Prepaid Expenses($9-$6) $                         (3.00)     Increase in accounts payable=($304-$224) $                         80.00     Decrease in accrued Liabilities=($71-$78) $                         (7.00)     Increase in Income Tax Payable=($72-$64) $                           8.00 $                                              48.00       Net cash provided by operating activities=(A) $                                            113.00 Cash flows from investing activities Sale of equipment (given) $                         18.00 Purchase of equipment(Calculated) $                      (98.00)       Net cash provided by investing activities =(B) $                                            (80.00) Cash flows from financing activities Buy back of stock=($200-$163) $                      (37.00) Cash dividends on common stock (given)=($94+$65-$122) $                      (37.00)     Issue of Bonds=($198-$172) $                         26.00    Sale of Long term Investment $                         12.00       Net cash provided by financing activities=(C ) $                                            (36.00) Change in cash=(A)+(B)+(C ) $                                              (3.00) Cash, beginning balance $                                              11.00 Cash, ending balance $                                                 8.00 Property,Plant & Equipment A/C Particular Amount Particular Amount To Bal b/d $                      358.00 By Depreciation on sale of equipment(given) $                  10.00 To Cash(Balancing Figure) $                         98.00 By Bank(Given) $                  18.00 By Depreciation($14-$10) $                    4.00 By Loss on sale=($30-$10-$18) $                    2.00 By Bal C/d $               422.00 $                      456.00 $               456.00 Calculation of Amount of Dividend Paid Retained Earnings of Last Year $                         94.00 Current Year Net Profit $                         65.00 Retained Earnings of Current Year $                      122.00 Dividend Paid=($94+$65-$122) $                         37.00

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

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