Problem 12-7A Prepare a Statement of Cash Flows [LO12-1, LO12-2]

[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	$	3	$	12
Accounts receivable		308		229
Inventory		159		196
Prepaid expenses		8		5
Total current assets		478		442
Property, plant, and equipment		515		435
Less accumulated depreciation		(86)		(72)
Net property, plant, and equipment		429		363
Long-term investments		27		33
Total assets	$	934	$	838
Liabilities and Stockholders' Equity
Accounts payable	$	302	$	225
Accrued liabilities		73		80
Income taxes payable		72		64
Total current liabilities		447		369
Bonds payable		198		171
Total liabilities		645		540
Common stock		165		201
Retained earnings		124		97
Total stockholders equity		289		298
Total liabilities and stockholders' equity	$	934	$	838

Weaver Company Income Statement For the Year Ended December 31, 2015
Sales			$	753
Cost of goods sold				450
Gross margin				303
Selling and administrative expenses				219
Net operating income				84
Nonoperating items:
Gain on sale of investments	$	6
Loss on sale of equipment		(2)		4
Income before taxes				88
Income taxes				25
Net income			$	63

During 2015, Weaver sold some equipment for $19 that had cost $31 and on which there was accumulated depreciation of $10. In addition, the company sold long-term investments for $12 that had cost $6 when purchased several years ago. A cash dividend was paid during 2015 and the company repurchased $36 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 for 2015. (Negative amount should be entered with a minus sign.)

Part 2

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.)