For the just completed year, Hanna Company had net income of $101,000. Balances in the companys current asset and current liability accounts at the beginning and end of the year were as follows:

	December 31
	End of Year		Beginning of Year
Current assets:
Cash and cash equivalents	$	56,000	$	82,000
Accounts receivable	$	162,000	$	184,000
Inventory	$	451,000	$	346,000
Prepaid expenses	$	12,500	$	13,500
Current liabilities:
Accounts payable	$	354,000	$	392,000
Accrued liabilities	$	8,500	$	13,000
Income taxes payable	$	33,000	$	25,000

The Accumulated Depreciation account had total credits of $50,000 during the year. Hanna Company did not record any gains or losses during the year.

Required:

Using the indirect method, determine the net cash provided by operating activities for the year. (List any deduction in cash and cash outflows as negative amounts.)

Comparative financial statements for Weaver Company follow:

Weaver Company Comparative Balance Sheet at December 31
	This Year			Last Year
Assets
Cash and cash equivalents	$	19		$	33
Accounts receivable		730			440
Inventory		205			270
Prepaid expenses		10			8
Total current assets		964			751
Property, plant, and equipment		750			640
Less accumulated depreciation		120			70
Net property, plant, and equipment		630			570
Long-term investments		-2			54
Total assets	$	1,592		$	1,375
Liabilities and Stockholders' Equity
Accounts payable	$	460		$	320
Accrued liabilities		60			70
Income taxes payable		91			84
Total current liabilities		611			474
Bonds payable		420			340
Total liabilities		1,031			814
Common stock		360			500
Retained earnings		201			61
Total stockholders equity		561			561
Total liabilities and stockholders' equity	$	1,592		$	1,375

Weaver Company Income Statement For This Year Ended December 31
Sales					$	940
Cost of goods sold						520
Gross margin						420
Selling and administrative expenses						203
Net operating income						217
Nonoperating items:
Gain on sale of investments	$	6
Loss on sale of equipment		(3	)			3
Income before taxes						220
Income taxes						66
Net income					$	154

During this year, Weaver sold some equipment for $16 that had cost $55 and on which there was accumulated depreciation of $36. In addition, the company sold long-term investments for $62 that had cost $56 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $140 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.