Comparative financial statements for Weaver Company follow:

Weaver Company Comparative Balance Sheet at December 31
	This Year			Last Year
Assets
Cash	$	11		$	23
Accounts receivable		510			330
Inventory		160			215
Prepaid expenses		5			3
Total current assets		686			571
Property, plant, and equipment		640			530
Less accumulated depreciation		95			80
Net property, plant, and equipment		545			450
Long-term investments		10			43
Total assets	$	1,241		$	1,064
Liabilities and Stockholders' Equity
Accounts payable	$	350		$	265
Accrued liabilities		45			60
Income taxes payable		80			73
Total current liabilities		475			398
Bonds payable		330			230
Total liabilities		805			628
Common stock		259			350
Retained earnings		177			86
Total stockholders equity		436			436
Total liabilities and stockholders' equity	$	1,241		$	1,064

Weaver Company Income Statement For This Year Ended December 31
Sales					$	830
Cost of goods sold						465
Gross margin						365
Selling and administrative expenses						217
Net operating income						148
Nonoperating items:
Gain on sale of investments	$	7
Loss on sale of equipment		(5	)			2
Income before taxes						150
Income taxes						45
Net income					$	105

During this year, Weaver sold some equipment for $14 that had cost $44 and on which there was accumulated depreciation of $25. In addition, the company sold long-term investments for $40 that had cost $33 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $91 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.

Required 1

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

• Required 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. (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