Please Provide Complete and Detailed Answers. Do a table for part 2. Thanks Weav
ID: 2409903 • Letter: P
Question
Please Provide Complete and Detailed Answers. Do a table for part 2. Thanks
Weaver Company Comparative Balance Sheet December 31, 2015 and 2014 2015 2014 Cash Accounts recelvable Inventory Prepald expenses $ 2 $ 11 231 196 306 155 9 Total current assets 468 443 Property, plant, and equipment 508 428 Less accumulated depreciation Net property, plant, and equipment Long-term Investments Total assets (86) 422 28 (71) 357 35 $ 918 835 Liabilties and Stockholders' Equity Accounts payable Accrued llabilities Income taxes payable $301 226 79 64 71 72 369 172 Total current llabllitles 198 642 161 Bonds payable Total llabllities 541 Common stock 200 94. 115 Retalned earnings Total stockholders' equity Total liabllties and stockholders' equity 276 294 $ 918 835Explanation / Answer
Answer = 1) Cash flows from operating activities Amount in $ Amount in $ Net income $ 60 Cash flows from operating activities Adjustments for: Gain on sale of investment $ -5 Loss on sale of Equipment $ 2 (Increase) / Decrease in Account receivables $ -75 Inventory Decrease / (Increase) $ 41 Accounts payable Increase / ( Decrese) $ 75 Income tax payable $ 8 Prepaid Expenses $ -4 Accrued liability $ -8 $ 34 Net cash from operating activities $ 94 Answer =2) Statement of Cash Flows - Indirect Method Amount in $ Amount in $ Net income $ 60 Cash flows from operating activities Adjustments for: Gain on sale of investment $ -5 Loss on sale of Equipment $ 2 (Increase) / Decrease in Account receivables $ -75 Inventory Decrease / (Increase) $ 41 Accounts payable Increase / ( Decrese) $ 75 Income tax payable $ 8 Prepaid Expenses $ -4 Accrued liability $ -8 $ 34 Net cash from operating activities $ 94 Cash flows from investing activities Sale of Equipment $ 18 Sale of investment $ 12 Purchase of Equipment $ -85 Net cash used in investing activities $ -55 Cash flows from Financing activities Dividend Paid $ -39 Purchase of Own Stock $ -39 Issue of New Bonds $ 26 Net cash used in financing activities $ -52 Net increase in cash and cash equivalents $ -13 Add :Cash and cash equivalents at beginning of period $ 11 Cash and cash equivalents at end of period $ -2 CALCULATION OF THE DIVIDEND Opening retained earning = $ 94 Add: Income of the year $ 60 $ 154 Less: Closing balance $ 115 Diff is the dividend paid $ 39 CALCULATION OF THE PURCHASE OF PROPERTY, PLANT AND EQUIPMENT Closing Balance $ 422 Less: Opening Balance $ 357 Difference $ 65 Add:Book Value of Equipemt sales($ 30-$ 10) $ 20 Purhcase of Equipment= $ 85