Comparative financial statements for Weaver Company follow:

Weaver Company Comparative Balance Sheet at December 31
	This Year			Last Year
Assets
Cash and cash equivalents	$	5		$	17
Accounts receivable		390			270
Inventory		135			185
Prepaid expenses		5			3
Total current assets		535			475
Property, plant, and equipment		580			470
Less accumulated depreciation		85			80
Net property, plant, and equipment		495			390
Long-term investments		19			37
Total assets	$	1,049		$	902
Liabilities and Stockholders' Equity
Accounts payable	$	290		$	235
Accrued liabilities		45			60
Income taxes payable		74			67
Total current liabilities		409			362
Bonds payable		270			170
Total liabilities		679			532
Common stock		213			300
Retained earnings		157			70
Total stockholders equity		370			370
Total liabilities and stockholders' equity	$	1,049		$	902

Weaver Company Income Statement For This Year Ended December 31
Sales					$	770
Cost of goods sold						435
Gross margin						335
Selling and administrative expenses						193
Net operating income						142
Nonoperating items:
Gain on sale of investments	$	10
Loss on sale of equipment		(2	)			8
Income before taxes						150
Income taxes						45
Net income					$	105

During this year, Weaver sold some equipment for $17 that had cost $38 and on which there was accumulated depreciation of $19. In addition, the company sold long-term investments for $28 that had cost $18 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $87 of its own stock. This year Weaver did not retire any bonds.

Required:

1. Using the direct method, adjust the companys income statement for this year to a cash basis.

2. Using the information obtained in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for this year.

to be deducted should be indicated with a minus sign.)

	Weaver Company Direct Method of Determining the Net Cash Flows from Operating Activities Adjustments to a cash basis: 0 Adjustments to a cash basis: 0 Selling and administrative expenses Adjustments to a cash basis: 0 Income taxes Adjustments to a cash basis: 0 $0

Cash outflows and amounts to be deducted should be indicated with a minus sign.)

	Weaver Company Statement of Cash Flows For This Year Ended December 31 Operating activities: Cash received from customers Less cash disbursements for: Total cash disbursements 0 0 Investing activities: 0 Financing activities: 0 0 Beginning cash and cash equivalents Ending cash and cash equivalents $0