omparative financial statements for Weaver Company follow:

Weaver Company Comparative Balance Sheet at December 31
	This Year	Last Year
Assets
Cash	$ 5	$ 17
Accounts receivable	390	270
Inventory	135	185
Prepaid expenses	5	3
Total current assets	535	475
Property, plant, and equipment	580	470
Less accumulated depreciation	85	80
Net property, plant, and equipment	495	390
Long-term investments	19	37
Total assets	$ 1,049	$ 902
Liabilities and Stockholders' Equity
Accounts payable	$ 290	$ 235
Accrued liabilities	45	60
Income taxes payable	74	67
Total current liabilities	409	362
Bonds payable	270	170
Total liabilities	679	532
Common stock	213	300
Retained earnings	157	70
Total stockholders equity	370	370
Total liabilities and stockholders' equity	$ 1,049	$ 902

Weaver Company Income Statement For This Year Ended December 31
Sales		$ 770
Cost of goods sold		435
Gross margin		335
Selling and administrative expenses		193
Net operating income		142
Nonoperating items:
Gain on sale of investments	$ 10
Loss on sale of equipment	(2)	8
Income before taxes		150
Income taxes		45
Net income		$ 105

During this year, Weaver sold some equipment for $17 that had cost $38 and on which there was accumulated depreciation of $19. In addition, the company sold long-term investments for $28 that had cost $18 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $87 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.