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.

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.

Complete this question by entering your answers in the tabs below.

Required 1

Using the direct method, adjust the companys income statement for this year to a cash basis. (Adjustment amounts that are to be deducted should be indicated with a minus sign.)

Weaver Company
Direct Method of Determining the Net Cash flows from Operating activities
Adjustments to a cash basis:
Adjustments to a cash basis:
Selling and administrative expenses
Adjustments to a cash basis:
Income taxes
Adjustments to a cash basis:

Required 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. (Cash outflows and amounts to be deducted should be indicated with a minus sign.)

Weaver Company
Statement of Cash Flows
For This Year Ended December 31
Operating activities:
Cash received from customers
Less cash disbursements for:
Total cash disbursements
Investing activities:
Financing activities:
Beginning cash and cash equivalents
Ending cash and cash equivalents