Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash $ 13 $ 30 Accounts receivable 670 410 Inventory 190 255 Prepaid expenses 7 5 Total current assets 880 700 Property, plant, and equipment 720 610 Less accumulated depreciation 105 40 Net property, plant, and equipment 615 570 Long-term investments 3 51 Total assets $ 1,498 $ 1,321 Liabilities and Stockholders' Equity Accounts payable $ 430 $ 305 Accrued liabilities 75 90 Income taxes payable 88 81 Total current liabilities 593 476 Bonds payable 370 310 Total liabilities 963 786 Common stock 368 450 Retained earnings 167 85 Total stockholders equity 535 535 Total liabilities and stockholders' equity $ 1,498 $ 1,321 Weaver Company Income Statement For This Year Ended December 31 Sales $ 910 Cost of goods sold 505 Gross margin 405 Selling and administrative expenses 247 Net operating income 158 Nonoperating items: Gain on sale of investments $ 8 Loss on sale of equipment (6) 2 Income before taxes 160 Income taxes 48 Net income $ 112 During this year, Weaver sold some equipment for $13 that had cost $52 and on which there was accumulated depreciation of $33. In addition, the company sold long-term investments for $56 that had cost $48 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $82 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.