Problem 12-7A Prepare a Statement of Cash Flows [LO12-1, L012-2] [The following information applies to the questions displayed below.) Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet December 31, 2015 and 2014 2015 2014 $ Assets Cash Accounts receivable Inventory Prepaid expenses $ 10 307 158 11 231 196 6 Total current assets 484 444 Property, plant, and equipment Less accumulated depreciation 505 (86) 427 (72) Net property, plant, and equipment 419 355 Long-term investments 25 $928 32 $ 831 Total assets Liabilities and Stockholders' Equity Accounts payable Accrued liabilities Income taxes payable $302 70 $224 78 65 Total current liabilities Bonds payable 443 197 367 171 Total liabilities 640 538 Common stock Retained earnings 165 123 200 93 Total stockholders' equity 288 293 Total liabilities and stockholders' equity $ 928 $ 831 Weaver Company Income Statement For the Year Ended December 31, 2015 Sales Cost of goods sold $ 753 448 Gross margin Selling and administrative expenses 305 220 Net operating income Nonoperating items: Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes Net income $ 65 During 2015, Weaver 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 $13 that had cost $7 when purchased several years ago. A cash dividend was paid during 2015 and the company repurchased $35 of its own stock. Weaver did not retire any bonds during 2015. Part 1 Required: 1. Using the indirect method, determine the net cash provided by/used by operating activities (Negative amount should be entered with a minus sign.) 2015. 2. Using the information in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for 2015. (List any deduction in cash and cash outflows as negative amounts.) Weaver Company Statement of Cash Flows - Indirect Method For This Year Ended December 31, 2015 Operating activities: Adjustments to convert net income to cash basis: Investing activities: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents