Weaver Company Comparative Balance Sheet December 31, 2015 and 2014 2015 2014 Cash Accounts recelvable Inventory Prepald expenses $ 2 $ 11 231 196 306 155 9 Total current assets 468 443 Property, plant, and equipment 508 428 Less accumulated depreciation Net property, plant, and equipment Long-term Investments Total assets (86) 422 28 (71) 357 35 $ 918 835 Liabilties and Stockholders\' Equity Accounts payable Accrued llabilities Income taxes payable $301 226 79 64 71 72 369 172 Total current llabllitles 198 642 161 Bonds payable Total llabllities 541 Common stock 200 94. 115 Retalned earnings Total stockholders\' equity Total liabllties and stockholders\' equity 276 294 $ 918 835 Solution Weaver Company Statement of Cash Flows For the year ended December 31, 2015 (I) Operating activities Net income for the current year 60 Adjustments to convert net income to cash basis Provision for tax made 25 Loss on sale of equipments 2 Depreciation provided 25 Less: Gain on sale of investments -5 Operating profits before working capital changes 107 Add: Decrease in current assets Inventory 41 Less: Increase in current assets Accounts receivable - 75 Prepaid expenses - 4 Add: Increase in current liabilities Accounts payables 75 Less: Decrease in current liabilities Accrued liabilities - 8 Less: Tax paid - 17 Net cash generated from operating activities 119 (II) Investing activities Sale of investments 12 Sale of equipments 18 Purchase of property, plant and equipments -110 Net cash used in investing activities - 80 (III) Financing activities Cash dividend paid - 39 Buy back of own stock - 39 Issue of bonds payable 26 Net cash used in financing activities - 52 Net increase in cash and cash equivalents (I+II+III) - 13 Add:Begining cash and cash equivalents 11 Ending cash and cash equivalents - 2 Dr. Provision for tax account Cr. Cash(Tax paid) 17 Balance b/d 64 Balance c/d 72 Provision for tax made 25 89 89 Dr. Property, plant and equipments account Cr. Balance b/d 428 Accu. depreciation 10 Cash (Purchases) 110 Cash (sale) 18 (Bal.Fig.) Loss on sale 2 Balance c/d 508 538 538 Dr. Accumulated depreciation account Cr. Equipment account 10 Balance b/d 71 Balance c/d 86 Depreciation for the current year 25 96 96 Net cash provided by operating activities $119.