A comparative balance sheet and income statement for Eaton Company follow:

Eaton Company Comparative Balance Sheet December 31, 2011 and 2010
	2011		2010
Assets
Cash	$	60	$	17
Accounts receivable		305		230
Inventory		159		196
Prepaid expenses		8		6
Total current assets		532		449
Property, plant, and equipment		526		447
Less accumulated depreciation		86		70
Net property, plant, and equipment		440		377
Long-term investments		26		32
Total assets	$	998	$	858
Liabilities and Stockholders' equity
Accounts payable	$	302	$	225
Accrued liabilities		71		78
Income taxes payable		73		65
Total current liabilities		446		368
Bonds payable		199		171
Total liabilities		645		539
Common stock		207		223
Retained earnings		146		96
Total stockholders equity		353		319
Total liabilities and stockholders' equity	$	998	$	858

Eaton Company Income Statement For the Year Ended December 31, 2011
Sales			$	750
Cost of goods sold				446
Gross margin				304
Selling and administrative expenses				219
Net operating income				85
Nonoperating items:
Gain on sale of investments	$	7
Loss on sale of equipment		(3)		4
Income before taxes				89
Income taxes				23
Net income			$	66

During 2011, Eaton sold some equipment for $18 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 $6 when purchased several years ago. A cash dividend was paid during 2011 and the company, repurchased $16 of its own stock. Eaton did not retire any bonds during 2011.

Required:
1.	Using the indirect method, determine the net cash for operating activities for 2011. (Negative amount should be entered with a minus sign.)

Net cash (Click to select)used inprovided by operating activities

$

2.	Using the information in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for 2011. (Amounts to be deducted and negative amounts should be indicated with a minus sign.)

Eaton Company Statement of Cash Flows For the Year Ended December 31, 2011
Operating activities:
(Click to select)Net lossNet income		$
Adjustments to convert net income to cash basis:
(Click to select)Increase in accounts payableDecrease in accrued liabilitiesIncrease in income taxes payableGain on sale of investmentsDepreciationLoss on sale of equipmentDecrease in accounts receivableIncrease in accounts receivableIncrease in inventoryDecrease in inventoryIncrease in prepaid expenses	$
(Click to select)Decrease in accounts receivableIncrease in income taxes payableIncrease in prepaid expensesIncrease in inventoryGain on sale of investmentsDecrease in accrued liabilitiesDepreciationDecrease in inventoryLoss on sale of equipmentIncrease in accounts payableIncrease in accounts receivable
(Click to select)Increase in accounts payableIncrease in inventoryDecrease in inventoryIncrease in income taxes payableGain on sale of investmentsDecrease in accounts receivableIncrease in prepaid expensesIncrease in accounts receivableLoss on sale of equipmentDepreciationDecrease in accrued liabilities
(Click to select)Increase in accounts payableDecrease in accounts receivableIncrease in prepaid expensesDecrease in inventoryIncrease in inventoryLoss on sale of equipmentIncrease in accounts receivableDecrease in accrued liabilitiesDepreciationGain on sale of investmentsIncrease in income taxes payable
(Click to select)Gain on sale of investmentsIncrease in inventoryDecrease in accrued liabilitiesIncrease in accounts payableIncrease in income taxes payableIncrease in accounts receivableDepreciationDecrease in accounts receivableIncrease in prepaid expensesLoss on sale of equipmentDecrease in inventory
(Click to select)Increase in prepaid expensesIncrease in accounts payableDecrease in accrued liabilitiesDepreciationIncrease in accounts receivableDecrease in inventoryIncrease in income taxes payableGain on sale of investmentsLoss on sale of equipmentIncrease in inventoryDecrease in accounts receivable
(Click to select)Decrease in inventoryIncrease in accounts receivableDecrease in accounts receivableLoss on sale of equipmentIncrease in income taxes payableGain on sale of investmentsIncrease in accounts payableDecrease in accrued liabilitiesDepreciationIncrease in inventoryIncrease in prepaid expenses
(Click to select)Decrease in accounts receivableDecrease in accrued liabilitiesIncrease in income taxes payableIncrease in accounts receivableIncrease in accounts payableDecrease in inventoryDepreciationGain on sale of investmentsIncrease in prepaid expensesLoss on sale of equipmentIncrease in inventory
(Click to select)Increase in income taxes payableLoss on sale of equipmentIncrease in accounts receivableGain on sale of investmentsIncrease in accounts payableDecrease in accrued liabilitiesDepreciationIncrease in inventoryDecrease in inventoryDecrease in accounts receivableIncrease in prepaid expenses
Net cash (Click to select)provided byused in operating activities
Investing activities:
(Click to select)Decrease in income taxes payableProceeds from sale of long-term investmentsDecrease in accounts receivableProceeds from sale of equipmentIncrease in accounts payableLoss on sale of equipmentDepreciationIncrease in accrued liabilitiesDecrease in property, plant and equipmentGain on sale of investmentsDecrease in common stockIncrease in prepaid expensesIncrease in accounts receivableIncrease in property, plant and equipment
(Click to select)Decrease in accounts receivableDecrease in property, plant and equipmentGain on sale of investmentsDecrease in common stockProceeds from sale of long-term investmentsLoss on sale of equipmentIncrease in prepaid expensesDecrease in income taxes payableIncrease in accounts payableIncrease in accrued liabilitiesIncrease in property, plant and equipmentIncrease in accounts receivableProceeds from sale of equipmentDepreciation
(Click to select)Proceeds from sale of long-term investmentsDepreciationDecrease in common stockDecrease in accounts receivableIncrease in accounts payableIncrease in prepaid expensesIncrease in accrued liabilitiesProceeds from sale of equipmentDecrease in income taxes payableGain on sale of investmentsDecrease in property, plant and equipmentLoss on sale of equipmentIncrease in accounts receivableIncrease in property, plant and equipment
Net cash (Click to select)used inprovided by investing activities
Financing activities:
(Click to select)Cash dividendsDecrease in accrued liabilitiesIssuance of bonds payableDecrease in common stockIncrease in accounts receivableProceeds from sale of long-term investmentsDecrease in accounts payableIncrease in accrued liabilitiesDecrease in accounts receivableProceeds from sale of equipmentIncrease in accounts payable
(Click to select)Decrease in common stockDecrease in accrued liabilitiesIncrease in accounts receivableIncrease in accounts payableProceeds from sale of equipmentProceeds from sale of long-term investmentsCash dividendsIncrease in accrued liabilitiesDecrease in accounts receivableDecrease in accounts payableIssuance of bonds payable
(Click to select)Proceeds from sale of equipmentCash dividendsIncrease in accounts receivableIncrease in accounts payableDecrease in accounts payableIncrease in accrued liabilitiesIssuance of bonds payableDecrease in accounts receivableDecrease in accrued liabilitiesProceeds from sale of long-term investmentsDecrease in common stock
Net cash (Click to select)provided byused in financing activities
(Click to select)Net decrease in cash Net increase in cash
Cash balance, January 1, 2011
Cash balance, December 31, 2011		$