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 410 145 $ 18 280 190 Less accumulated depreciation Net property, plant, and equipment Long-term investments Total assets 564 590 100 490 18 $1,072 492 480 90 390 38 $ 920 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 $ 300 240 70 68 378 180 558 300 62 362 75 435 275 710 140 362 $1,072 Total liabilities and stockholders' equity $ 920 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: $780 440 340 209 131 Gain on sale of investments 10 Loss on sale of equipment Income before taxes Income taxes Net income 1) 9 140 42 $ 98 During this year, Weaver sold some equipment for $18 that had cost $39 and on which there was accumulated depreciation of $20. In addition, the company sold long-term investments for $30 that had cost $20 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $78 of its own stock. This year Weaver did not retire any bonds Required 1. Using the direct method, adjust the company's 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 Complete this question by entering your answers in the tabs below. Weaver Company Direct Method of Determining the Net Cash flows from Operating activities Adjustments to a cash basis: Adjustments to a cash basis: Selling and administrative expenses Adjustments to a cash basis: Income taxes Adjustments to a cash basis: Statement of Cash Flows For This Year Ended December 31 Operating activities Cash received from customers Less cash disbursements for: Total cash disbursements Investing activities Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents