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Sprout7430
Sprout7430
08.02.2021 • 
Business

Below are certain events that took place at Hazzard, Inc., last year: a) Collected cash from customers
b) Paid cash to repurchase its own stock
c) Borrowed money from a creditor
d) Paid suppliers for inventory purchases
e) Repaid the principal amount of a debt
f) Paid interest to lenders
g) Paid a cash dividend to stockholders
h) Sold common stock
i) Loaned money to another entity
j) Paid taxes to the government
k) Paid wages and salaries to employees
l) Purchased equipment with cash
m) Paid bills to insurers and utility providers
Required:
Prepare an answer sheet with the following headings:
Activity Transaction Operating Investing Financing
a x
b x
c x
d x
e x
f x
g x
h x
i x
j x
k x
l x
m x
Enter the cash inflows and outflows above on your answer sheet and indicate how each of them would be classified on a statement of cash flows. Place an X in the Operating, Investing, or Financing column as appropriate.
Problem: Prepare a Statement of Cash Flows
Comparative financial statements for Weaver Company follow:
Weaver Company
Comparative Balance Sheet
December 31, 2014 and 2013
2014 2013
Assets
Cash $ 9 $ 15
Accounts receivable 340 240
Inventory 125 175
Prepaid expenses 10 6
Total current assets 484 436
Property, plant, and equipment 610 470
Less accumulated depreciation 93 85
Net property, plant, and equipment 517 385
Long-term investments 16 19
Total assets $1,017 $840
Liability and Stockholders’ Equity
Accounts payable $310 $230
Accrued liabilities 60 72
Income taxes payable 40 34
Total current liabilities 410 336
Bonds payable 290 180
Total liabilities 700 516
Common stock 210 250
Retaining earnings 107 74
Total stockholders’ equity 317 324 Total liabilities and stockholders’ equity $1,017 $840
Weaver Company
Income Statement
For the Year Ended December 31, 2014
Sales $800
Cost of goods sold 500
Gross Margin 300
Selling and administrative expenses 213
Net Operating income 87
Nonoperating items:
Gain on sale of investments $7
Loss on sale of equipment (4) 3
Income before taxes 90
Income taxes 27
Net income $63
During 2014, Weaver sold some equipment for $20 that had cost $40 and on which there was accumulated depreciation of $16. In addition, the company sold long-term investments for $10 that had cost $3 when purchased several years ago. A cash dividend was paid during 2014 and the company repurchased $40 of its own stock. Weaver did not retire any bonds during 2014.
Required:
1) Using the indirect method, determine the net cash provided by operating activities for 2014.
2) Using the information in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for 2014.

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