290 Comparative financial statements for Weaver Company follow, Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash and cash equivalents $ 15 5 19 Accounts receivable 430 Inventory 150 195 Prepaid expenses . 5 Total corrent assets 502 509 Property, plant, and equipment 600 490 Less accumulated depreciation 105 40 Net property, plant, and equipment 495 450 Long-term investments 18 39 Total assets $1,115 Liabilities and Stockholders' Equity Accounts payable $ 310 $ 245 Accrued liabilities 65 80 Income taxes payable 76 69 Total current Itabilities 451 394 Bonds payable 250 190 Total liabilities 201 584 Common stock Retained earnings 338 400 75 14 Total stockholders' equity 414 Total liabilities and stockholders' equity $1,115 $ 998 Weaver Company Income Statement Yor This Year Ended December 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes Net Income 5790 445 345 227 118 $11 (9) 120 36 S 84 During this year, Weaver sold some equipment for $10 that had cost $40 and on which there was accumulated depreciation of $21. In addition, the company sold long-term investments for $32 that had cost $21 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $62 of its own stock. This year Weaver did not retire any bonds. Required: 1. Using the direct method, adjust the company's 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. Complete this question by entering your answers in the tabs below