Weaver Company Comparative Balance Sheet December 31 2015 an

Weaver Company Comparative Balance Sheet December 31, 2015 and 2014 2015 2014 Cash Accounts recelvable Inventory Prepald expenses $ 2 $ 11 231 196 306 155 9 Total current assets 468 443 Property, plant, and equipment 508 428 Less accumulated depreciation Net property, plant, and equipment Long-term Investments Total assets (86) 422 28 (71) 357 35 $ 918 835 Liabilties and Stockholders\' Equity Accounts payable Accrued llabilities Income taxes payable $301 226 79 64 71 72 369 172 Total current llabllitles 198 642 161 Bonds payable Total llabllities 541 Common stock 200 94. 115 Retalned earnings Total stockholders\' equity Total liabllties and stockholders\' equity 276 294 $ 918 835

Solution

Weaver Company

Statement of Cash Flows

For the year ended December 31, 2015

(I) Operating activities

Net income for the current year 60

Adjustments to convert net income to cash basis

Provision for tax made 25

Loss on sale of equipments 2

Depreciation provided 25

Less: Gain on sale of investments -5

Operating profits before working capital changes 107

Add: Decrease in current assets

Inventory 41

Less: Increase in current assets

Accounts receivable - 75

Prepaid expenses - 4

Add: Increase in current liabilities

Accounts payables 75

Less: Decrease in current liabilities

Accrued liabilities - 8

Less: Tax paid - 17

Net cash generated from operating activities 119

(II) Investing activities

Sale of investments 12

Sale of equipments 18

Purchase of property, plant and equipments -110

Net cash used in investing activities - 80

(III) Financing activities

Cash dividend paid - 39

Buy back of own stock - 39

Issue of bonds payable 26

Net cash used in financing activities - 52

Net increase in cash and cash equivalents (I+II+III) - 13

Add:Begining cash and cash equivalents 11

Ending cash and cash equivalents - 2

Dr. Provision for tax account Cr.

Cash(Tax paid) 17 Balance b/d 64

Balance c/d 72 Provision for tax made 25

89 89

Dr. Property, plant and equipments account Cr.

Balance b/d 428 Accu. depreciation 10

Cash (Purchases) 110 Cash (sale) 18

(Bal.Fig.) Loss on sale 2

Balance c/d 508

538 538

Dr. Accumulated depreciation account Cr.

Equipment account 10 Balance b/d 71

Balance c/d 86 Depreciation for the current year 25

96 96

Net cash provided by operating activities $119