Problem 12-7A Prepare a Statement of Cash Flows [LO12-1, LO12-2] [The following
ID: 2501911 • Letter: P
Question
Problem 12-7A Prepare a Statement of Cash Flows [LO12-1, LO12-2]
[The following information applies to the questions displayed below.]
During 2015, 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 $6 when purchased several years ago. A cash dividend was paid during 2015 and the company repurchased $40 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.
Using the information in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for 2015.
Comparative financial statements for Weaver Company follow:Explanation / Answer
1. Using the indirect method, determine the net cash provided by/used by operating activities for 2015.
2. Using the information in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for 2015.
Weaver Company Stement of cash Flows For the Year Ended December 31, 2015 Cash Flows from Operating Activities Net Income $69 Adjustments Increase in Accounts receivable -$81 Decreasein Inventory $36 Increase in Prepaid Expenses -$2 Increase in Accounts Payable $78 Decrease in Accrued Liabilites -$8 Increase in Income tax payable $9 Loss on sale of equipment $1 Depreciation $25 Gain on sale of Investment -$6 $52 Net Cash flows from operating Activites $121