Problem 12-7A Prepare a Statement of Cash Flows [LO12-1, LO12-2] [The following
ID: 2576831 • 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 $7 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.
1.
Using the indirect method, determine the net cash provided by/used by operating activities for 2015. (Negative amount should be entered with a minus sign.)
Comparative financial statements for Weaver Company follow:Explanation / Answer
Statement of Cash Flows (partial) Net income 65 Adjustments to convert net income to a cash basis: Depreciation 25 Loss on sale equipment 1 Increase in accounts receivable -79 Decrease in inventory 38 Increase in prepaid expenses -4 Increase in accounts payable 76 Decrease in accrued liabilities -7 Increase in income taxes payable 9 Gain on sale of long-term investments -5 54 Net cash provided by operating activities 119