Comparative financial statements for Weaver Company follow:

Weaver Company Comparative Balance Sheet at December 31
	This Year	Last Year
Assets
Cash	$ 24	$ 11
Accounts receivable	294	229
Inventory	150	196
Prepaid expenses	8	5
Total current assets	476	441
Property, plant, and equipment	510	432
Less accumulated depreciation	(80)	(71)
Net property, plant, and equipment	430	361
Long-term investments	24	31
Total assets	$ 930	$ 833
Liabilities and Stockholders' Equity
Accounts payable	$ 300	$ 226
Accrued liabilities	70	77
Income taxes payable	72	64
Total current liabilities	442	367
Bonds payable	199	171
Total liabilities	641	538
Common stock	164	201
Retained earnings	125	94
Total stockholders equity	289	295
Total liabilities and stockholders' equity	$ 930	$ 833

Weaver Company Income Statement For This Year Ended December 31
Sales		$ 754
Cost of goods sold		448
Gross margin		306
Selling and administrative expenses		219
Net operating income		87
Nonoperating items:
Gain on sale of investments	$ 6
Loss on sale of equipment	(2)	4
Income before taxes		91
Income taxes		23
Net income		$ 68

During this year, Weaver sold some equipment for $18 that had cost $30 and on which there was accumulated depreciation of $10. In addition, the company sold long-term investments for $13 that had cost $7 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $37 of its own stock. This year Weaver did not retire any bonds.

Net income Weaver Company Statement of Cash Flows-Indirect Method (partial) Adjustments to convert net income to a cash basis: Depreciation $ 10 EA $ $ 10 78 88 68