Comparative financial statements for Weaver Company follow:

Weaver Company Comparative Balance Sheet at December 31
	This Year	Last Year
Assets
Cash	$ 8	$ 13
Accounts receivable	310	230
Inventory	105	165
Prepaid expenses	8	6
Total current assets	431	414
Property, plant, and equipment	540	430
Less accumulated depreciation	55	40
Net property, plant, and equipment	485	390
Long-term investments	28	33
Total assets	$ 944	$ 837
Liabilities and Stockholders' Equity
Accounts payable	$ 250	$ 215
Accrued liabilities	65	80
Income taxes payable	70	63
Total current liabilities	385	358
Bonds payable	210	130
Total liabilities	595	488
Common stock	226	300
Retained earnings	123	49
Total stockholders equity	349	349
Total liabilities and stockholders' equity	$ 944	$ 837

Weaver Company Income Statement For This Year Ended December 31
Sales		$ 730
Cost of goods sold		415
Gross margin		315
Selling and administrative expenses		204
Net operating income		111
Nonoperating items:
Gain on sale of investments	$ 15
Loss on sale of equipment	(6)	9
Income before taxes		120
Income taxes		36
Net income		$ 84

During this year, Weaver sold some equipment for $13 that had cost $34 and on which there was accumulated depreciation of $15. In addition, the company sold long-term investments for $20 that had cost $5 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $74 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.