Groton Company Comparative Balance Sheet December 31, 2011 and 2010
	2011		2010
Assets
Cash	$	7	$	18
Accounts receivable		346		257
Inventory		186		238
Prepaid expenses		36		34
Total current assets		575		547
Property, plant, and equipment		537		458
Less accumulated depreciation		(83)		(69)
Net property, plant, and equipment		454		389
Long-term investments		39		44
Total assets	$	1,068	$	980
Liabilities and Stockholders' equity
Accounts payable	$	315	$	239
Accrued liabilities		84		94
Income taxes payable		83		74
Total current liabilities		482		407
Bonds payable		226		200
Total liabilities		708		607
Common stock		191		230
Retained earnings		169		143
Total stockholders equity		360		373
Total liabilities and stockholders' equity	$	1,068	$	980

Groton Company Income Statement For the Year Ended December 31, 2011

Sales

$

741

Cost of goods sold

444

Gross margin

297

Selling and administrative expenses

199

Net operating income

98

Non operating items:

Gain on sale of investments

$

5

Loss on sale of equipment

(2)

3

Income before taxes

101

Income taxes

36

Net income

$

65

During 2011, Groton sold some equipment for $29 that had cost $41 and on which there was accumulated depreciation of $10. In addition, the company sold long-term investments for $10 that had cost $5 when purchased several years ago. A cash dividend was paid during 2011 and the company repurchased $39 of its own stock. Groton did not retire any bonds during 2011.

1.

Using the indirect method, determine the net cash provided by/used by operating activities for 2011. (Negative amount should be entered with a minus sign.)

2.	Using the information in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for 2011. (Amounts to be deducted and negative amounts should be indicated with a minus sign.)