Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet December 31, 2015 and 2014 2015 2014 Assets Cash $ 5 $ 17 Accounts receivable 390 270 Inventory 135 185 Prepaid expenses 5 3 Total current assets 535 475 Property, plant, and equipment 580 470 Less accumulated depreciation 85 80 Net property, plant, and equipment 495 390 Long-term investments 19 37 Total assets $ 1,049 $ 902 Liabilities and Stockholders' Equity Accounts payable $ 290 $ 235 Accrued liabilities 45 60 Income taxes payable 74 67 Total current liabilities 409 362 Bonds payable 270 170 Total liabilities 679 532 Common stock 213 300 Retained earnings 157 70 Total stockholders equity 370 370 Total liabilities and stockholders' equity $ 1,049 $ 902 Weaver Company Income Statement For the Year Ended December 31, 2015 Sales $ 770 Cost of goods sold 435 Gross margin 335 Selling and administrative expenses 193 Net operating income 142 Nonoperating items: Gain on sale of investments $ 10 Loss on sale of equipment (2) 8 Income before taxes 150 Income taxes 45 Net income $ 105 During 2015, Weaver sold some equipment for $17 that 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. A cash dividend was paid during 2015 and the company repurchased $87 of its own stock. Weaver did not retire any bonds during 2015. Required: 1. Using the direct method, adjust the companys income statement for 2015 to a cash basis. (Adjustment amounts that are to be deducted should be indicated with a minus sign.) 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 2015. (Cash outflows and amounts to be deducted should be indicated with a minus sign.)