Comparative financial statements for Weaver Company follow:

Weaver Company Comparative Balance Sheet at December 31
	This Year	Last Year
Assets
Cash	$ 14	$ 21
Accounts receivable	470	310
Inventory	165	205
Prepaid expenses	9	7
Total current assets	658	543
Property, plant, and equipment	620	510
Less accumulated depreciation	115	60
Net property, plant, and equipment	505	450
Long-term investments	18	41
Total assets	$ 1,181	$ 1,034
Liabilities and Stockholders' Equity
Accounts payable	$ 330	$ 255
Accrued liabilities	25	40
Income taxes payable	78	71
Total current liabilities	433	366
Bonds payable	290	210
Total liabilities	723	576
Common stock	319	400
Retained earnings	139	58
Total stockholders equity	458	458
Total liabilities and stockholders' equity	$ 1,181	$ 1,034

Weaver Company Income Statement For This Year Ended December 31
Sales		$ 810
Cost of goods sold		455
Gross margin		355
Selling and administrative expenses		231
Net operating income		124
Nonoperating items:
Gain on sale of investments	$ 13
Loss on sale of equipment	(7)	6
Income before taxes		130
Income taxes		39
Net income		$ 91

During this year, Weaver sold some equipment for $12 that had cost $42 and on which there was accumulated depreciation of $23. In addition, the company sold long-term investments for $36 that had cost $23 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $81 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.