Comparative financial statements for Weaver Company follow:

Weaver Company Comparative Balance Sheet at December 31
	This Year			Last Year
Assets
Cash and cash equivalents	$	15		$	19
Accounts receivable		430			290
Inventory		150			195
Prepaid expenses		7			5
Total current assets		602			509
Property, plant, and equipment		600			490
Less accumulated depreciation		105			40
Net property, plant, and equipment		495			450
Long-term investments		18			39
Total assets	$	1,115		$	998
Liabilities and Stockholders' Equity
Accounts payable	$	310		$	245
Accrued liabilities		65			80
Income taxes payable		76			69
Total current liabilities		451			394
Bonds payable		250			190
Total liabilities		701			584
Common stock		338			400
Retained earnings		76			14
Total stockholders equity		414			414
Total liabilities and stockholders' equity	$	1,115		$	998

Weaver Company Income Statement For This Year Ended December 31
Sales					$	790
Cost of goods sold						445
Gross margin						345
Selling and administrative expenses						227
Net operating income						118
Nonoperating items:
Gain on sale of investments	$	11
Loss on sale of equipment		(9	)			2
Income before taxes						120
Income taxes						36
Net income					$	84

During this year, Weaver sold some equipment for $10 that had cost $40 and on which there was accumulated depreciation of $21. In addition, the company sold long-term investments for $32 that had cost $21 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $62 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.