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	$	43	$	19
Accounts receivable		308		231
Inventory		160		195
Prepaid expenses		9		6
Total current assets		520		451
Property, plant, and equipment		528		448
Less accumulated depreciation		86		72
Net property, plant, and equipment		442		376
Long-term investments		26		32
Total assets	$	988	$	859
Liabilities and Stockholders' equity
Accounts payable	$	301	$	225
Accrued liabilities		70		79
Income taxes payable		72		64
Total current liabilities		443		368
Bonds payable		199		171
Total liabilities		642		539
Common stock		205		224
Retained earnings		141		96
Total stockholders equity		346		320
Total liabilities and stockholders' equity	$	988	$	859

Eaton Company Income Statement For the Year Ended December 31, 2011
Sales			$	752
Cost of goods sold				446
Gross margin				306
Selling and administrative expenses				223
Net operating income				83
Nonoperating items:
Gain on sale of investments	$	6
Loss on sale of equipment		(2)		4
Income before taxes				87
Income taxes				23
Net income			$	64

During 2011, Eaton 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 $12 that had cost $6 when purchased several years ago. A cash dividend was paid during 2011 and the company, repurchased $19 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 prepaid expensesIncrease in accounts payableDecrease in inventoryLoss on sale of equipmentDecrease in accounts receivableDepreciationGain on sale of investmentsIncrease in accounts receivableIncrease in income taxes payableIncrease in inventoryDecrease in accrued liabilities	$
(Click to select)Decrease in inventoryIncrease in income taxes payableIncrease in accounts payableDecrease in accounts receivableIncrease in prepaid expensesIncrease in accounts receivableGain on sale of investmentsLoss on sale of equipmentDepreciationIncrease in inventoryDecrease in accrued liabilities
(Click to select)Decrease in accrued liabilitiesDecrease in inventoryGain on sale of investmentsIncrease in inventoryLoss on sale of equipmentIncrease in accounts receivableIncrease in income taxes payableDepreciationDecrease in accounts receivableIncrease in prepaid expensesIncrease in accounts payable
(Click to select)Increase in accounts receivableDecrease in accrued liabilitiesIncrease in accounts payableIncrease in inventoryDecrease in accounts receivableIncrease in prepaid expensesIncrease in income taxes payableDecrease in inventoryGain on sale of investmentsDepreciationLoss on sale of equipment
(Click to select)Decrease in accrued liabilitiesDecrease in accounts receivableIncrease in income taxes payableIncrease in inventoryIncrease in prepaid expensesIncrease in accounts receivableDepreciationGain on sale of investmentsLoss on sale of equipmentIncrease in accounts payableDecrease in inventory
(Click to select)Increase in accounts payableDecrease in accrued liabilitiesGain on sale of investmentsIncrease in prepaid expensesIncrease in income taxes payableDepreciationDecrease in accounts receivableIncrease in accounts receivableDecrease in inventoryLoss on sale of equipmentIncrease in inventory
(Click to select)Decrease in inventoryIncrease in accounts payableDecrease in accrued liabilitiesLoss on sale of equipmentIncrease in prepaid expensesGain on sale of investmentsDepreciationDecrease in accounts receivableIncrease in income taxes payableIncrease in inventoryIncrease in accounts receivable
(Click to select)Increase in prepaid expensesIncrease in inventoryIncrease in income taxes payableLoss on sale of equipmentDepreciationIncrease in accounts payableDecrease in inventoryDecrease in accrued liabilitiesGain on sale of investmentsIncrease in accounts receivableDecrease in accounts receivable
(Click to select)Increase in accounts payableDecrease in accrued liabilitiesLoss on sale of equipmentIncrease in income taxes payableDecrease in inventoryIncrease in prepaid expensesDepreciationDecrease in accounts receivableIncrease in accounts receivableGain on sale of investmentsIncrease in inventory
Net cash (Click to select)provided byused in operating activities
Investing activities:
(Click to select)Increase in prepaid expensesIncrease in property, plant and equipmentProceeds from sale of long-term investmentsGain on sale of investmentsDecrease in common stockIncrease in accrued liabilitiesIncrease in accounts payableDecrease in income taxes payableDecrease in property, plant and equipmentDepreciationLoss on sale of equipmentProceeds from sale of equipmentDecrease in accounts receivableIncrease in accounts receivable
(Click to select)Increase in accrued liabilitiesLoss on sale of equipmentDecrease in accounts receivableDecrease in common stockDecrease in property, plant and equipmentIncrease in prepaid expensesIncrease in accounts receivableGain on sale of investmentsDecrease in income taxes payableIncrease in accounts payableIncrease in property, plant and equipmentDepreciationProceeds from sale of long-term investmentsProceeds from sale of equipment
(Click to select)DepreciationProceeds from sale of long-term investmentsLoss on sale of equipmentDecrease in property, plant and equipmentDecrease in income taxes payableIncrease in accounts payableDecrease in accounts receivableIncrease in accounts receivableProceeds from sale of equipmentGain on sale of investmentsIncrease in prepaid expensesIncrease in accrued liabilitiesIncrease in property, plant and equipmentDecrease in common stock
Net cash (Click to select)used inprovided by investing activities
Financing activities:
(Click to select)Cash dividendsProceeds from sale of long-term investmentsDecrease in accrued liabilitiesIncrease in accounts payableIncrease in accounts receivableDecrease in accounts receivableDecrease in common stockDecrease in accounts payableIssuance of bonds payableIncrease in accrued liabilitiesProceeds from sale of equipment
(Click to select)Decrease in accounts receivableIssuance of bonds payableDecrease in common stockIncrease in accounts receivableCash dividendsProceeds from sale of equipmentDecrease in accounts payableIncrease in accounts payableDecrease in accrued liabilitiesIncrease in accrued liabilitiesProceeds from sale of long-term investments
(Click to select)Increase in accounts payableDecrease in common stockDecrease in accounts receivableIncrease in accrued liabilitiesDecrease in accrued liabilitiesDecrease in accounts payableIncrease in accounts receivableProceeds from sale of long-term investmentsCash dividendsIssuance of bonds payableProceeds from sale of equipment
Net cash (Click to select)used inprovided by financing activities
(Click to select)Net increase in cash Net decrease in cash
Cash balance, January 1, 2011
Cash balance, December 31, 2011		$