Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash $ 28 $ 13 Accounts receivable 293 228 Inventory Prepaid expenses Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Long-term investments Total assets 150 195 9 6 480 442 506 427 (83) (70) 423 357 27 33 $ 930 $ 832 Liabilities and Stockholders' Equity Accounts payable $ 302 $ 225 Accrued liabilities 72 79 Income taxes payable 72 63 Total current liabilities 446 367 Bonds payable 199 170 Total liabilities 645 537 Common stock 164 201 Retained earnings 121 94 Total stockholders' equity Total liabilities and stockholders' equity 285 295 $ 930 $ 832 Weaver Company Income Statement For This Year Ended December 31 Sales $ 751 Cost of goods sold 446 Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of investments 305 220 85 Loss on sale of equipment $ 6 (3) 3 Income before taxes Income taxes 88 24 Net income $ 64 During this year, Weaver sold some equipment for $18 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. Weaver paid a cash dividend this year and the company repurchased $37 of its own stock. This year Weaver did not retire any bonds. 1. Using the indirect method, determine the net cash provided by/used in operating activities for this year. (List any deduction in cash and cash outflows as negative amounts.) Weaver Company Statement of Cash Flows-Indirect Method (partial) Net income $ 64 Adjustments to convert net income to a cash basis: Depreciation Gain on sale of investments Loss on sale of equipment Increase in accounts receivable Decrease in inventory Increase in prepaid expenses Increase in accounts payable Decrease in accrued liabilities Increase in income taxes payable Net cash provided by operating activities $ 26 26 $ 90 2. Using the information from Part 1, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for this year. (List any deduction in cash and cash outflows as negative amounts.) Weaver Company Statement of Cash Flows For This Year Ended December 31 Operating activities: Investing activities: Financing activities: 0 0 0