gcc chp 13 q 9

omparative financial statements for Weaver Company follow:

Weaver Company Comparative Balance Sheet at December 31
	This Year	Last Year
Assets
Cash	$ 19	$ 24
Accounts receivable	530	340
Inventory	155	220
Prepaid expenses	6	4
Total current assets	710	588
Property, plant, and equipment	650	540
Less accumulated depreciation	100	90
Net property, plant, and equipment	550	450
Long-term investments	9	44
Total assets	$ 1,269	$ 1,082
Liabilities and Stockholders' Equity
Accounts payable	$ 360	$ 270
Accrued liabilities	60	70
Income taxes payable	81	74
Total current liabilities	501	414
Bonds payable	340	240
Total liabilities	841	654
Common stock	254	350
Retained earnings	174	78
Total stockholders equity	428	428
Total liabilities and stockholders' equity	$ 1,269	$ 1,082

Weaver Company Income Statement For This Year Ended December 31
Sales		$ 840
Cost of goods sold		470
Gross margin		370
Selling and administrative expenses		213
Net operating income		157
Nonoperating items:
Gain on sale of investments	$ 7
Loss on sale of equipment	(4)	3
Income before taxes		160
Income taxes		48
Net income		$ 112

During this year, Weaver sold some equipment for $15 that had cost $45 and on which there was accumulated depreciation of $26. In addition, the company sold long-term investments for $42 that had cost $35 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $96 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.