The foWowing information applies to the questions displayed below Comparative fi
ID: 2487028 • Letter: T
Question
The foWowing information applies to the questions displayed below Comparative financial statements for Weaver Company follow Weaver Compeny Comparative Balance Sheet December 31, 2015 and 2014 Accounts recevable nventory Prepaid expenses 305 230 159 196 Total current assets 491 443 Property, plant, and equipmment 503 424 Less accumulated deprecietion Net property, plant, and equipment Long-term investments Total assets (85) (72) 4 352 26 33 935 $ 828 Liabilities and Stockholders Equity Accounts payable Acerued liabilities Income taxes payable $303 %224 73 63 449 364 73 Total cutrent liabäties Bonds payeble 197 171 646 535 165 201 Total iabiities Common stock Retained earnings 124 92 289 293 %935 $828 Total stockhoiders' equity Total labilities and stockholders' equity Income Statement For the Year Ended December 31, 2015 the Year Ended December 31,2 447 Cost of goods sold Gross margin Selling and administrative expenses 219 89 Net operating income Nonoperating items s 5 Gain on sale of investments Loss on sale of equipment 3) 2 Income betore taxes Net income s 68 During 2015. Weaver sold sorse equipment for $18 that had cost $3t and on which there was accumulated eciation of SO·in additon·the company sold long-term mestnents for S12 that had cost $7 when puschased several years ago A cash dividend was peid during 2015 and the company repurchased $36 of ihs own stock Weaver did not retire any bonds during 2015Explanation / Answer
Workings
Cash flow Statement Net Income 68 Add Depreciation 23 Less Gain On sale Of Investment -5 Add Loss On sale of equipment 3 Less Increase In Account Receivable -75 Add Decrease in Inventory 37 Less Increase In Prepaid expense -3 Add Increase In Account payable 79 Less Decrease in Acrude liabilities -4 Add Increasein Tax payable 10 Cash Flow from Operation 133