Question: Need help please. Problem 12-7A Prepare a Statement of Cash Flows [LO12-1, LO12-2] [The following information applies to the questions displayed below.] Comparative financial statements
Need help please.
Problem 12-7A Prepare a Statement of Cash Flows [LO12-1, LO12-2]
[The following information applies to the questions displayed below.]
| Comparative financial statements for Weaver Company follow: |
| Weaver Company Comparative Balance Sheet December 31, 2015 and 2014 | ||||
| 2015 | 2014 | |||
| Assets | ||||
| Cash | $ | 7 | $ | 11 |
| Accounts receivable | 308 | 230 | ||
| Inventory | 160 | 194 | ||
| Prepaid expenses | 9 | 5 | ||
| Total current assets | 484 | 440 | ||
| Property, plant, and equipment | 514 | 434 | ||
| Less accumulated depreciation | (85) | (71) | ||
| Net property, plant, and equipment | 429 | 363 | ||
| Long-term investments | 23 | 30 | ||
| Total assets | $ | 936 | $ | 833 |
| Liabilities and Stockholders' Equity | ||||
| Accounts payable | $ | 301 | $ | 225 |
| Accrued liabilities | 72 | 79 | ||
| Income taxes payable | 74 | 64 | ||
| Total current liabilities | 447 | 368 | ||
| Bonds payable | 197 | 170 | ||
| Total liabilities | 644 | 538 | ||
| Common stock | 165 | 202 | ||
| Retained earnings | 127 | 93 | ||
| Total stockholders equity | 292 | 295 | ||
| Total liabilities and stockholders' equity | $ | 936 | $ | 833 |
| Weaver Company Income Statement For the Year Ended December 31, 2015 | ||||
| Sales | $ | 754 | ||
| Cost of goods sold | 446 | |||
| Gross margin | 308 | |||
| Selling and administrative expenses | 218 | |||
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| Net operating income | 90 | |||
| Nonoperating items: | ||||
| Gain on sale of investments | $ | 6 | ||
| Loss on sale of equipment | (1) | 5 | ||
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| Income before taxes | 95 | |||
| Income taxes | 24 | |||
| Net income | $ | 71 | ||
| 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 $13 that had cost $7 when purchased several years ago. A cash dividend was paid during 2015 and the company repurchased $37 of its own stock. Weaver did not retire any bonds during 2015. |
Part 1
| Required: | |
| 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.) |
| Part 2
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