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Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash and cash equivalents $

Comparative financial statements for Weaver Company follow:

Weaver Company Comparative Balance Sheet at December 31
This Year Last Year
Assets
Cash and cash equivalents $ 18 $ 11
Accounts receivable 294 230
Inventory 157 194
Prepaid expenses 9 5
Total current assets 478 440
Property, plant, and equipment 511 432
Less accumulated depreciation (81 ) (71 )
Net property, plant, and equipment 430 361
Long-term investments 25 31
Total assets $ 933 $ 832
Liabilities and Stockholders' Equity
Accounts payable $ 304 $ 226
Accrued liabilities 72 77
Income taxes payable 75 63
Total current liabilities 451 366
Bonds payable 199 171
Total liabilities 650 537
Common stock 161 200
Retained earnings 122 95
Total stockholders equity 283 295
Total liabilities and stockholders' equity $ 933 $ 832

Weaver Company Income Statement For This Year Ended December 31
Sales $ 754
Cost of goods sold 447
Gross margin 307
Selling and administrative expenses 223
Net operating income 84
Nonoperating items:
Gain on sale of investments $ 7
Loss on sale of equipment (3 ) 4
Income before taxes 88
Income taxes 22
Net income $ 66

During this year, Weaver sold some equipment for $18 that had cost $31 and on which there was accumulated depreciation of $10. In addition, the company sold long-term investments for $13 that had cost $6 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $39 of its own stock. This year Weaver did not retire any bonds.

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.)

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.)

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