Comparative financial statements for Weaver Company follow:

Weaver Company Comparative Balance Sheet at December 31
	This Year			Last Year
Assets
Cash	$	5		$	28
Accounts receivable		630			390
Inventory		180			245
Prepaid expenses		5			3
Total current assets		820			666
Property, plant, and equipment		700			590
Less accumulated depreciation		85			80
Net property, plant, and equipment		615			510
Long-term investments		7			49
Total assets	$	1,442		$	1,225
Liabilities and Stockholders' Equity
Accounts payable	$	410		$	295
Accrued liabilities		55			70
Income taxes payable		86			79
Total current liabilities		551			444
Bonds payable		400			290
Total liabilities		951			734
Common stock		300			400
Retained earnings		191			91
Total stockholders equity		491			491
Total liabilities and stockholders' equity	$	1,442		$	1,225

Weaver Company Income Statement For This Year Ended December 31
Sales					$	890
Cost of goods sold						495
Gross margin						395
Selling and administrative expenses						217
Net operating income						178
Nonoperating items:
Gain on sale of investments	$	10
Loss on sale of equipment		(8	)			2
Income before taxes						180
Income taxes						54
Net income					$	126

During this year, Weaver sold some equipment for $11 that had cost $50 and on which there was accumulated depreciation of $31. In addition, the company sold long-term investments for $52 that had cost $42 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $100 of its own stock. This year Weaver did not retire any bonds.

Required:

1. Using the direct method, adjust the companys income statement for this year to a cash basis.

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 this year.