Comparative financial statements for Weaver Company follow:

Weaver Company Comparative Balance Sheet at December 31
	This Year				Last Year
Assets
Cash	$	9			$	12
Accounts receivable		305				230
Inventory		156				195
Prepaid expenses		8				6
Total current assets		478				443
Property, plant, and equipment		507				427
Less accumulated depreciation		(86	)			(70	)
Net property, plant, and equipment		421				357
Long-term investments		28				34
Total assets	$	927			$	834
Liabilities and Stockholders' Equity
Accounts payable	$	304			$	226
Accrued liabilities		71				77
Income taxes payable		72				64
Total current liabilities		447				367
Bonds payable		198				171
Total liabilities		645				538
Common stock		162				200
Retained earnings		120				96
Total stockholders’ equity		282				296
Total liabilities and stockholders' equity	$	927			$	834

Weaver Company Income Statement For This Year Ended December 31
Sales					$	753
Cost of goods sold						448
Gross margin						305
Selling and administrative expenses						223
Net operating income						82
Non-operating items:
Gain on sale of investments	$	6
Loss on sale of equipment		(3	)			3
Income before taxes						85
Income taxes						23
Net income					$	62

During this year, Weaver sold some equipment for $18 that had cost $31 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. Weaver paid a cash dividend this year and the company repurchased $38 of its own stock. This year Weaver did not retire any bonds.

Required:

Using the indirect method, determine the net cash provided by/used in operating activities for this year.

Answer rating: 100% (QA)

Solution Solution 1 Weaver Company Cash Flow from Operating Activities For year ended December 31 20... View the full answer