Prepare a statement of cash flows using the indirect method

PROBLEM 14-7 Prepare a Statement of Cash Flows LO14-1, LO14-2 Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year $ 9 340 125 10 $ 15 240 175 6 Assets Cash and cash equivalents. Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment. Less accumulated depreciation. Net property, plant, and equipment Long-term investments 484 436 610 93 470 85 517 385 19 16 Total assets $1,017 $840 Liabilities and Stockholders' Equity Accounts payable Accrued liabilities .. Income taxes payable Total current liabilities Bonds payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity... $ 310 60 40 410 290 $230 72 34 336 180 700 516 210 107 250 74 317 $1,017 324 $840 $800 500 300 213 Weaver Company Income Statement For This Year Ended December 31 Sales ..... Cost of goods sold Gross margin .... Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes Net income 87 $7 3 90 27 $ 63 During this year, 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 invest- ments for that had cost $3 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $40 of its own stock. This year Weaver did not retire any bonds