Comparative financial statements for Weaver Company follow:

Weaver Company Comparative Balance Sheet at December 31
	This Year			Last Year
Assets
Cash and cash equivalents	$	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.