Comparative financial statements for Weaver Company follow:

Weaver Company Comparative Balance Sheet December 31, 2014 and 2013
	2014		2013
Assets
Cash	$	9	$	21
Accounts receivable		610		380
Inventory		175		240
Prepaid expenses		10		8
Total current assets		804		649
Property, plant, and equipment		690		580
Less accumulated depreciation		80		70
Net property, plant, and equipment		610		510
Long-term investments		10		48
Total assets	$	1,424	$	1,207
Liabilities and Stockholders' Equity
Accounts payable	$	400	$	290
Accrued liabilities		50		60
Income taxes payable		85		78
Total current liabilities		535		428
Bonds payable		390		280
Total liabilities		925		708
Common stock		341		450
Retained earnings		158		49
Total stockholders equity		499		499
Total liabilities and stockholders' equity	$	1,424	$	1,207

Weaver Company Income Statement For the Year Ended December 31, 2014
Sales			$	880
Cost of goods sold				490
Gross margin				390
Selling and administrative expenses				203
Net operating income				187
Nonoperating items:
Gain on sale of investments	$	12
Loss on sale of equipment		(9)		3
Income before taxes				190
Income taxes				57
Net income			$	133

During 2014, Weaver sold some equipment for $10 that had cost $49 and on which there was accumulated depreciation of $30. In addition, the company sold long-term investments for $50 that had cost $38 when purchased several years ago. A cash dividend was paid during 2014 and the company repurchased $109 of its own stock. Weaver did not retire any bonds during 2014.

Required:
1.	Using the direct method, adjust the companys income statement for 2014 to a cash basis. (Adjustment amounts that are to be deducted should be indicated with a minus sign.)

2.	Using the information in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for 2014. (Cash outflows and amounts to be deducted should be indicated with a minus sign.)

E1 810 Leng-erm se otal asat Far the Year Ended Oacomber 31, 2014 Gelirg and nominieatie