Stuck on a problem for 3 hours!!! Please help!

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 2004

Cash $ 9 $ 15

Accounts Receivable 340

240

Inventory

125 175

Prepaid expenses

10 6

Plant and Equipment

610 470

Less Accumulated Depreciation (93) (85)

Long-term investments 16

19

Total Assets $1,017 $ 840

Liabilities and Stockholders' Equity

Accounts payable $ 310 $ 230

Accrued liabilities

60 72

Bonds payable

290 180

Deferred income taxes 40

34

Common stock 210

250

Retained earnings

107 74

Total 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

300

Less operating expenses 213

Net operating income

87

Non-operating items

Gain on sale of investments $7

Loss on sale of equipment 4 3

Income before taxes

90

Less income taxes

27

Net 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.
Reply to
Bigfoot It Is
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Post your statement of cash flows and maybe someone will show you where you are off $2. (or contribute $2)

.
Reply to
Steve

The formatting is off obviously (sorry)... is it ok to post (attach) an Excel spreadsheet here?

I have 3 different accounting books and they all just skim over the topic. The assignment includes some accounts and some situations that aren't covered in the book...

I'm not sure if everything is even in the right place (I didn't even know what to do with the Bonds Payable, I wasn't sure if I should include it) but this is what I came up with... Thanks again.

Weaver Company Satement of Cash Flows December 31, 2005

Cash Flows From Operating Activities Net Income $ 63 Adjustments to reconcile net income to net cash provided by operating activities Depreciation $ 8 Gain On Sale Investments (7) Loss On Sale of Equipment 4 Increase In Accounts Receivable (100) Decrease In Inventory 50 Increase In Prepaid Expenses 4 Increase In Accounts Payable 80 Decrease In Accrued Liabilities (12) Deffered Income Taxes 6 33 Net Cash Provided By Operating Activities 96

Cash Flows From Investing Activities Purchase of Plant and Equipment (140) Sale of Investments 10 Sale of Equipment 20 Net Cash Used By Investing Activities (110)

Cash Flows From Financing Activities Cash Dividends Paid (30) Issued Common Stock 40 Net Cash Providied By Financing Activities 10

Net Decrease In Cash (4) Cash at the Beginning of the Year 15 Cash at the End of the Year $ 11

Reply to
Bigfoot It Is

I did not look at the whole statement but the Bonds Payable increase of 110 should be an addition to cash, The decrease in Common Stock 40 should be a decrease in cash.

(93)

$
Reply to
Steve

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