Required information

Problem 13-7 Prepare a Statement of Cash Flows [LO13-1, LO13-2]

[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 and cash equivalents	$	18			$	12
Accounts receivable		297				229
Inventory		158				196
Prepaid expenses		8				6
Total current assets		481				443
Property, plant, and equipment		507				429
Less accumulated depreciation		(85	)			(70	)
Net property, plant, and equipment		422				359
Long-term investments		26				32
Total assets	$	929			$	834
Liabilities and Stockholders' Equity
Accounts payable	$	302			$	225
Accrued liabilities		72				78
Income taxes payable		74				64
Total current liabilities		448				367
Bonds payable		198				171
Total liabilities		646				538
Common stock		162				201
Retained earnings		121				95
Total stockholders equity		283				296
Total liabilities and stockholders' equity	$	929			$	834

Weaver Company Income Statement For This Year Ended December 31
Sales					$	754
Cost of goods sold						446
Gross margin						308
Selling and administrative expenses						223
Net operating income						85
Nonoperating items:
Gain on sale of investments	$	6
Loss on sale of equipment		(2	)			4
Income before taxes						89
Income taxes						24
Net income					$	65

During this year, Weaver sold some equipment for $19 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 $39 of its own stock. This year Weaver did not retire any bonds.

Problem 13-7 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.)