Problem 14-7 Prepare a Statement of Cash Flows [LO14-1, LO14-2]

[The following information applies to the questions displayed below.]

Comparative financial statements for Weaver Company follow:

Weaver Company Comparative Balance Sheet at December 31
	This Year				Last Year
Assets
Cash	$	8			$	11
Accounts receivable		310				228
Inventory		157				195
Prepaid expenses		9				6
Total current assets		484				440
Property, plant, and equipment		511				431
Less accumulated depreciation		(86	)			(71	)
Net property, plant, and equipment		425				360
Long-term investments		25				32
Total assets	$	934			$	832
Liabilities and Stockholders' Equity
Accounts payable	$	305			$	225
Accrued liabilities		71				78
Income taxes payable		72				64
Total current liabilities		448				367
Bonds payable		200				171
Total liabilities		648				538
Common stock		163				201
Retained earnings		123				93
Total stockholders equity		286				294
Total liabilities and stockholders' equity	$	934			$	832

Weaver Company Income Statement For This Year Ended December 31
Sales					$	754
Cost of goods sold						446
Gross margin						308
Selling and administrative expenses						220
Net operating income						88
Nonoperating items:
Gain on sale of investments	$	5
Loss on sale of equipment		(1	)			4
Income before taxes						92
Income taxes						24
Net income					$	68

During this year, 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. Weaver paid a cash dividend this year and the company repurchased $38 of its own stock. This year Weaver did not retire any bonds.

Problem 14-7 Part 2

2. Using the information in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for this year. (List any deduction in cash and cash outflows as negative amounts.)