Comparative financial statements for Weaver Company follow:

Weaver Company Comparative Balance Sheet at December 31
	This Year	Last Year
Assets
Cash	$ 15	$ 19
Accounts receivable	430	290
Inventory	150	195
Prepaid expenses	7	5
Total current assets	602	509
Property, plant, and equipment	600	490
Less accumulated depreciation	105	40
Net property, plant, and equipment	495	450
Long-term investments	18	39
Total assets	$ 1,115	$ 998
Liabilities and Stockholders' Equity
Accounts payable	$ 310	$ 245
Accrued liabilities	65	80
Income taxes payable	76	69
Total current liabilities	451	394
Bonds payable	250	190
Total liabilities	701	584
Common stock	338	400
Retained earnings	76	14
Total stockholders equity	414	414
Total liabilities and stockholders' equity	$ 1,115	$ 998

Weaver Company Income Statement For This Year Ended December 31
Sales		$ 790
Cost of goods sold		445
Gross margin		345
Selling and administrative expenses		227
Net operating income		118
Nonoperating items:
Gain on sale of investments	$ 11
Loss on sale of equipment	(9)	2
Income before taxes		120
Income taxes		36
Net income		$ 84

During this year, Weaver sold some equipment for $10 that had cost $40 and on which there was accumulated depreciation of $21. In addition, the company sold long-term investments for $32 that had cost $21 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $62 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.