Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment s 12 230 195 309 156 442 433 72 361 3 4 $837 477 512 85 427 27 $ 931 Less accumulated depreciation Net property, plant, and equipment Long-term investments Total assets Liabilities and Stockholders' Equity Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $226 79 64 369 $ 304 70 75 449 196 645 163 123 286 $ 931 540 201 96 297 $837 Weaver Company Income Statement For This Year Ended December 31 Sales Cost of goods sold Gross marqin Selling and administrative expenses Net operating income Nonoperating items: $755 446 309 223 86 Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes Net income (2) 4 90 25 $ 65 During this year, Weaver sold some equipment for $18 that had cost $30 and on which there was accumulated depreciation of $10. In addition, the company sold long-term investments for $13 that had cost $7 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $38 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. Weaver Company Statement of Cash Flows-Indirect Method (partial) Net income $65 Adjustments to convert net income to a cash basis: Depreciation Gain on sale of investments Loss on sale of equipment Increase in accounts receivable Increase in prepaid expenses Decrease in inventory Increase in accounts payable Decrease in accrued liabilities Increase in income taxes payable Net cash provided by operating activities 61 Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment s 12 230 195 309 156 477 512 85 427 27 $ 931 442 433 72 361 3 4 Less accumulated Net property, plant, and equipment Long-term investments Total assets depreciation $837 Liabilities and Stockholders' Equity Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $226 79 64 369 $ 304 70 75 449 196 645 163 123 286 $931 540 201 96 297 $837 Weaver Company Income Statement For This Year Ended December 31 Sales Cost of goods sold GrOSs marin Selling and administrative expenses Net operating income Nonoperating items: $755 446 223 86 Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes Net income (2) 4 90 25 $ 65 During this year, Weaver sold some equipment for $18 that had cost $30 and on which there was accumulated depreciation of $10. In addition, the company sold long-term investments for $13 that had cost $7 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $38 of its own stock. This year Weaver did not retire any bonds 2. Using the information in (1) above, 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.) Weaver Company Statement of Cash Flows For This Year Ended December 31 Operating activities et cash provided by operating activities Investing activities Additions to property, plant, and equipment roceeds from sale of long-term investments roceeds from sale of equipment et cash used in investing activities Financing activities Cash dividends paid epurchase of common stock ssuance of bonds payable et cash used in financing activities et decrease in cash Beginning cash and cash equivalents Ending cash and cash equivalents