Could someone please help me with this problem. It's part of an assignment for school and I've gone through 3 accounting books and 3 hours and keep coming up $2 off somehow. It's a pretty basic problem but for some reason something is just not falling into place. If you're very bored and could help me, it would be much appreciated!!!
Thanks in advance... 8^)
Weaver Company
Comparative Balance Sheet
December 31, 2005 and 2004
Assets
2005 2004Cash $ 9 $ 15
Accounts Receivable 340
240Inventory
125 175Prepaid expenses
10 6Plant and Equipment
610 470Less Accumulated Depreciation (93) (85)
Long-term investments 16
19Total Assets $1,017 $ 840
Liabilities and Stockholders' Equity
Accounts payable $ 310 $ 230
Accrued liabilities
60 72Bonds payable
290 180Deferred income taxes 40
34Common stock 210
250Retained earnings
107 74Total Liabilities and stockholders' equity $1,017 $ 840
Weaver Company
Income Statement
For the Year Ended December 31, 2005
Sales $800
Less Cost of Goods Sold 500
Gross Margin
300Less operating expenses 213
Net operating income
87Non-operating items
Gain on sale of investments $7
Loss on sale of equipment 4 3
Income before taxes
90Less income taxes
27Net income $ 63
During 2005, the company 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. Cash dividends totaling $30 were paid during 2005.
Required: Using the information above prepare a statement of cash flows for
2005.