Problem 14-7 Prepare a Statement of Cash Flows [LO14-1, LO14-2 [The following in
ID: 2572468 • Letter: P
Question
Problem 14-7 Prepare a Statement of Cash Flows [LO14-1, LO14-2 [The following information applies to the questions displayed below. Comparative financial statements for Weaver Company follow aver 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 2 308 157 S 12 231 195 6 475 513 (85) 428 26 433 Less accumulated depreciation Net property, plant, and equipment Long-term investments Total assets (71) 362 32 $838 $ 929 5930 Liabilities and stockholders' Equity Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total 1liabilities Common stock Retained earnings Total stockholders' equity 302$225 79 65 445369 170 641539 163202 97 299 72 71 196 125 288Explanation / Answer
Weaver Company Cash Flow Statement For year ended 31 December Cash flows from operating activities Net Income $ 67 Adjustment to reconcile net income to: Depreciation expense $ 24 $85-$71+$10 Gain on sale of investment $ (6) Loss on sale of equipment $ 1 Changes in current operating assets and liabilities Increase in accounts receivable $ (77) Decrease in inventory $ 38 Increase in prepaid expense $ (2) Increase in accounts payable $ 77 Decrease in accrued liabilities $ (7) Increase in income tax payable $ 6 $ 54 Net cash provided by operating activities $ 121 Cash flows from investing activities Proceed from sale of Investments $ 12 Proceed from sale of Equipment $ 19 Purchase of equipment $ (110) $433-$513-$30 Net cash provided by investing activities $ (79) Cash flows from financing activities Repurchase of shares $ (39) Bonds received $ 26 Dividend paid $ (39) Net cash provided by financing activities $ (52) Net increase in cash and cash equivalents $ (10) Cash and cash equivalents at beginning of period $ 12 Cash and cash equivalents at end of period $ 2