Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year $ $ 5 390 135 17 270 185 535 580 85 495 19 $1,049 475 470 80 390 37 902 $ Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Long-term investments Total assets Liabilities and Stockholders' Equity Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 290 $ 235 60 409 270 679 213 157 370 $1,049 362 170 532 300 70 370 902 $ $ 770 435 335 Weaver Company Income Statement For 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 193 142 During this year, Weaver sold some equipment for $17 that had cost $38 and on which there was accu at 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. Using the direct method, adjust the company's income statement for this year to a cash basis. (Adjustment amounts that are to be deducted should be indicated with a minus sign.) Weaver Company Direct Method of Determining the Net Cash flows from Operating activities Net income 105 Adjustments to a cash basis: 105 Adjustments to a cash basis: Selling and administrative expenses Adjustments to a cash basis: Income taxes Adjustments to a cash basis: 105 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. (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 Net cash provided by operating activities Investing activities: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents $ 0