Problem 127A Prepare a Statement of Cash Flows LO121 LO122 T

Problem 12-7A Prepare a Statement of Cash Flows [LO12-1, LO12-2]

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

During 2015, 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. A cash dividend was paid during 2015 and the company repurchased $36 of its own stock. Weaver did not retire any bonds during 2015.

Part 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

Using the information in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for 2015. (List any deduction in cash and cash outflows as negative amounts.)

Comparative financial statements for Weaver Company follow:

Weaver Company
Partial Statement of Cash Flows (Indirect Method)
For the Year Ended December 31, 2015
Cash Flows from Operating Activities:
Net income		63
Adjustments to reconcile net income to net cash provided by operations:
Depreciation expense [86 - (72 - 10)]	24
Gain on sale of investments	-6
Loss on sale of equipment	2
Increase in Accounts receivable	-79
Decrease in Inventory	37
Increase in Prepaid expenses	-3
Increase in Accounts payable	77
Decrease in Accrued liabilities	-7
Increase in Income taxes payable	8	53
Net cash provided by operating activities		116

Problem 12-7A Prepare a Statement of Cash Flows [LO12-1, LO12-2] [The following information applies to the questions displayed below.] During 2015, Weaver sold

Problem 127A Prepare a Statement of Cash Flows LO121 LO122 T

Solution

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