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Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash S 19 S 24 Accounts receivable 530 340 Inventory 155 220 Prepaid expenses 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 14 Total assets $1, 269 $ 1, 082 Liabilities and Stockholders' Equity Accounts payable S 360 S 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 128 128 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 Loss on sale of equipment 7 ( 4) 3 Income before taxes 160 Income taxes 48 Net income $112During 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 company's 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. Using the direct method, adjust the company's Income statement for this year to a cash basis. {Adjustment amounts that are to be deducted should be Indicated with a minus sign.) Adjustments to a dash basis; 0 Adjustments to a cash basis; _ 0 Selling and administrative expenses Adjustments to a dash basis: 0 unwmems Adjustments to a cash basis: _ 0 $ \" Required 1 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 Investing activities: 0 Financing activities: 0 0 Beginning cash and cash equivalents Ending cash and cash equivalents $ 0