of cash flows. PROBLEM 14-8 Prepare a Statement of Cash Flows (L01, LO2) A comparative balance sheet and income statement for Eaton Company follow: 2010 Eaton Company Comparative Balance Sheet December 31, 2011 and 2010 2011 Assets Cash $ 4 Accounts receivable 310 Inventory 160 Prepaid expenses 8 Total current assets 482 Property, plant, and equipment. 500 Less accumulated depreciation 85 Net property, plant, and equipment 415 Long-term investments .. 31 Total assets... $928 Liabilities and Stockholders' Equity Accounts payable $300 Accrued liabilities 70 Income taxes payable 71 Total current liabilities 441 Bonds payable 195 Total liabilities 636 Common stock 160 Retained earnings 132 Total stockholders' equity Total liabilities and stockholders' equity $928 $ 11 230 195 6 442 420 70 350 38 $830 $225 80 63 368 170 538 200 92 292 $830 292 Eaton Company Income Statement For the Year Ended December 31, 2011 Sales ... Cost of goods sold Gross margin..... Selling and administrative expenses Net operating income... Nonoperating items: Gain on sale of investments .. $5 Loss on sale of equipment.. (2) Income before taxes Income taxes.... Net income.. $750 450 300 223 77 3 80 24 $ 56 During 2011. Eaton sold some equipment for $18 that had cost $30 and on which there was accumulated depreciation of $10. In addition, the company sold long-term investments for $12 that had cost $7 when purchased several years ago. A cash dividend was paid during 2011 and the company, repurchased $40 of its own stock. Eaton did not retire any bonds during 2011. Required: 1. Using the indirect method, determine the net cash provided by operating activities for 2011. 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