Comparative financial statements for Weaver Company follow:

Weaver Company Comparative Balance Sheet at December 31
	This Year				Last Year
Assets
Cash	$	25			$	13
Accounts receivable		293				231
Inventory		153				196
Prepaid expenses		8				6
Total current assets		479				446
Property, plant, and equipment		501				423
Less accumulated depreciation		(81	)			(70	)
Net property, plant, and equipment		420				353
Long-term investments		27				33
Total assets	$	926			$	832
Liabilities and Stockholders' Equity
Accounts payable	$	302			$	225
Accrued liabilities		72				80
Income taxes payable		72				63
Total current liabilities		446				368
Bonds payable		195				170
Total liabilities		641				538
Common stock		164				202
Retained earnings		121				92
Total stockholders equity		285				294
Total liabilities and stockholders' equity	$	926			$	832

Weaver Company Income Statement For This Year Ended December 31
Sales					$	751
Cost of goods sold						448
Gross margin						303
Selling and administrative expenses						218
Net operating income						85
Nonoperating items:
Gain on sale of investments	$	6
Loss on sale of equipment		(1	)			5
Income before taxes						90
Income taxes						23
Net income					$	67

During this year, Weaver sold some equipment for $19 that had cost $30 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 $38 of its own stock. This year Weaver did not retire any bonds.

Problem 15-7 Part 1 (Algo)

Required:

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.)

Problem 15-7 Part 2 (Algo)

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 Comparative Balance Sheet at December 31 This Year Last Year $ 25 293 153 $ 13 231 196 6 479 501 (81) 420 27 stelsel ====== 446 423 (70) 353 $ 926 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Long-term investments Total assets Liabilities and Stockholders' Equity Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $832 $ 302 72 72 446 195 $225 80 63 368 170 641 538 164 202 121 92 285 294 $ 926 $832 Weaver Company Income Statement For This Year Ended December 31 Sales $ 751 448 303 218 85 Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes ( $ 6 (1) 5 90 23 Net income $ 67