Chapter 12

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Comparative financial statements for Weaver Company follow:

Weaver Company Comparative Balance Sheet December 31, 2015 and 2014
	2015		2014
Assets
Cash	$	9	$	15
Accounts receivable		340		240
Inventory		125		175
Prepaid expenses		10		6
Total current assets		484		436
Property, plant, and equipment		610		470
Less accumulated depreciation		(93)		(85)
Net property, plant, and equipment		517		385
Long-term investments		16		19
Total assets	$	1,017	$	840
Liabilities and Stockholders' Equity
Accounts payable	$	310	$	230
Accrued liabilities		60		72
Income taxes payable		40		34
Total current liabilities		410		336
Bonds payable		290		180
Total liabilities		700		516
Common stock		210		250
Retained earnings		107		74
Total stockholders equity		317		324
Total liabilities and stockholders' equity	$	1,017	$	840

Weaver Company Income Statement For the Year Ended December 31, 2015
Sales			$	800
Cost of goods sold				500
Gross margin				300
Selling and administrative expenses				213
Net operating income				87
Nonoperating items:
Gain on sale of investments	$	7
Loss on sale of equipment		(4)		3
Income before taxes				90
Income taxes				27
Net income			$	63

During 2015, Weaver sold some equipment for $20 that had cost $40 and on which there was accumulated depreciation of $16. In addition, the company sold long-term investments for $10 that had cost $3 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.

4.

value: 10.00 points

Required information

Required:
1.	Using the indirect method, determine the net cash provided by (used in) operating activities for 2015. (Negative amount should be entered with a minus sign.)

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WorksheetLearning Objective: 12-01 Classify cash inflows and outflows as relating to operating, investing, or financing activities.

Difficulty: 2 MediumLearning Objective: 12-02 Prepare a statement of cash flows using the indirect method to determine the net cash provided by operating activities.

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5.

value: 10.00 points

Required information

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. (List any deduction in cash and cash outflows as negative amounts.)