Net Income 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 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. Weaver Company Comparative Balance Sheet at December 31 This Year Last Year 19 33 730 205 10 964 750 540 570 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Long-term investments Total assets Liabilities and Stockholders' Equity Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 320 460 60 611 420 1,031 350 201 $1,592 Weaver Company Income Statement For This Year Ended December 31 Sales Cost of goods sold Gros margin $ 940 520 420 Weaver Company Income Statement For This Year Ended December 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items! Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes Net income 220 66 $154