Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year $ 14 290 157 8 469 511 (82) 429 25 $ 923 $ 12 230 194 6 442 432 (71) 361 31 $834 Assets Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment 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 $ 305 71 71 447 197 644 160 119 279 $ 226 77 65 368 171 539 200 95 295 $ 923 $834 Weaver Company Income Statement For This Year Ended December 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes $ 752 447 305 221 84 $ 6 (3) 3 87 23 Net income $ 64 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 $12 that had cost $6 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $40 of its own stock. This year Weaver did not retire any bonds. Weaver Company Statement of Cash Flows-Indirect Method (partial) Net income Adjustments to convert net income to a cash basis: Increase in accounts receivable Decrease in inventory Increase in prepaid expenses Depreciation Increase in accounts payable Decrease in accrued liabilities Increase in income taxes payable Gain on sale of investments Loss on sale of equipment 0 Net cash provided by operating activities $ 0