Required information 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 Assets Cash 15 Accounts receivable 294 Inventory 157 Prepaid expenses 8 Total current assets 474 Property, plant, and equipment 506 Less accumulated depreciation (82) 424 Net property, plant, and equipment Long-term investments 29 Total assets $ 927 Liabilities and Stockholders' Equity Accounts payable $ 303 Accrued liabilities 72 Income taxes payable 71 Total current liabilities. 446 Bonds payable 197 Total liabilities 643 Common stock 16 Retained earnings 123 Total stockholders' equity 284 Total liabilities and stockholders' equity $ 927 $ Last Year $ 12 230 196 6 444 426 (71) 355 35 $834 $226 80 64 370 170 540 201 93 294 $834 Weaver Company Income Statement For This Year Ended December 31 Sales $753 Cost of goods sold 445 Gross margin 308 219 Selling and administrative expenses Net operating income Nonoperating items: 89 Gain on sale of investments Loss on sale of equipment Income before taxes 4 93 Income taxes. 23 Net income $ 70 During this year, Weaver sold some equipment for $18 that had cost $31 and on which there was accumulated depreciation of $10. In addition, the company sold long-term investments for $13 that had cost $6 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. $ 7 (3) Weaver Company Statement of Cash Flows For This Year Ended December 31 Operating activities: Net cash provided by operating activities Investing activities: Additions to property, plant, and equipment Proceeds from sale of equipment Proceeds from sale of long-term investments Net cash used in investing activities Financing activities: Issuance of bonds payable Repurchase of common stock Cash dividends paid Net cash used in financing activities Beginning cash and cash equivalents Ending cash and cash equivalents $ (111) 13 27 (40) $ 136 (98) (13) 25 25