Comparative financial statements for Weaver Company follow:

Weaver Company Comparative Balance Sheet at December 31
	This Year			Last Year
Assets
Cash	$	26		$	31
Accounts receivable		690			420
Inventory		195			260
Prepaid expenses		8			6
Total current assets		919			717
Property, plant, and equipment		730			620
Less accumulated depreciation		110			50
Net property, plant, and equipment		620			570
Long-term investments		2			52
Total assets	$	1,541		$	1,339
Liabilities and Stockholders' Equity
Accounts payable	$	440		$	310
Accrued liabilities		40			50
Income taxes payable		89			82
Total current liabilities		569			442
Bonds payable		395			320
Total liabilities		964			762
Common stock		377			500
Retained earnings		200			77
Total stockholders equity		577			577
Total liabilities and stockholders' equity	$	1,541		$	1,339

Weaver Company Income Statement For This Year Ended December 31
Sales					$	920
Cost of goods sold						510
Gross margin						410
Selling and administrative expenses						223
Net operating income						187
Nonoperating items:
Gain on sale of investments	$	8
Loss on sale of equipment		(5	)			3
Income before taxes						190
Income taxes						57
Net income					$	133

During this year, Weaver sold some equipment for $14 that had cost $53 and on which there was accumulated depreciation of $34. In addition, the company sold long-term investments for $58 that had cost $50 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $123 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.

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:
		0
Adjustments to a cash basis:
		0
Selling and administrative expenses
Adjustments to a cash basis:
		0
Income taxes
Adjustments to a cash basis:
		0
		$0

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		0
		0
Investing activities:
		0
Financing activities:
		0
		0
Beginning cash and cash equivalents
Ending cash and cash equivalents		$0