Question

During this year, Weaver sold some equipment for $19 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 $7 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $39 of its own stock. This year Weaver did not retire any bonds.
Using the information from Part 1, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for this year. (List any deduction in cash and cash outflows as negative amounts.)
Weaver Company
Statement of Cash Flows
For This Year Ended December 31
Operating activities:
Investing activities:
Financing activities:
Beginning cash and cash equivalents
Ending cash and cash equivalent

Answer 1

Answer:

Operating activities:

None

Investing Activities:

Loss on disposal (31 - 10 -19) $3

Financing Activities:

Gain on Long term investment (13 - 7) $6

Cash dividend paid $39

Explanation:

Weaver had incurred transactions which involved exchange of cash so they are reported in the statement of cash flows. These transactions are classified as either operating activity, investing activity or financing activity depending on the nature of transaction.