Question - Comparative financial statements for Weaver Company follow:
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Weaver Company Comparative Balance Sheet December 31, 2009 and 2008
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2009
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2008
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Assets
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Cash
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$9
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$15
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Accounts receivable
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340
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240
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Inventory
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125
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175
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Prepaid expenses
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10
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6
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Plant and equipment
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610
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470
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Less accumulated depreciation
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(93)
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(85)
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Long-term investments
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16
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19
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Total assets
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$1,017
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$840
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Liabilities and Stockholder's Equity
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Accounts payable
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$310
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$230
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Accrued liabilities
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60
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72
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Bonds payable
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290
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180
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Deferred income taxes
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40
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34
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Common stock
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210
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250
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Retained earnings
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107
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74
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Total liabilities and equity
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$1,017
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$840
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Weaver Company Income Statement
For the Year Ended December 31, 2009
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Sales
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$800
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Cost of goods sold
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500
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Gross margin
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300
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Selling and administrative expenses
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213
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Net operating income
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87
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Nonoperating items:
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Gain on sale of investments
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$7
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Loss on sale of equipment
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4
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3
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Income before taxes
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90
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Income taxes
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27
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Net income
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$ 63
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During 2009, the company sold some equipment for $20 that had cost $40 and on which there was accumulated depreciation for $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 2009.
1. Using the indirect method, determine the net cash provided by operating activities for 2009.
2. Using the information in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for 2009.