Problem 13-7 (Algo) Prepare a Statement of Cash Flows [LO13-1, LO13-2]

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Comparative financial statements for Weaver Company follow:

Weaver Company Comparative Balance Sheet at December 31
	This Year	Last Year
Assets
Cash	$ -11	$ 11
Accounts receivable	331	228
Inventory	151	195
Prepaid expenses	8	5
Total current assets	479	439
Property, plant, and equipment	510	432
Less accumulated depreciation	82	72
Net property, plant, and equipment	428	360
Long-term investments	26	32
Total assets	$ 933	$ 831
Liabilities and Stockholders' Equity
Accounts payable	$ 302	$ 224
Accrued liabilities	71	78
Income taxes payable	73	63
Total current liabilities	446	365
Bonds payable	199	170
Total liabilities	645	535
Common stock	164	201
Retained earnings	124	95
Total stockholders equity	288	296
Total liabilities and stockholders' equity	$ 933	$ 831

Weaver Company Income Statement For This Year Ended December 31
Sales		$ 751
Cost of goods sold		447
Gross margin		304
Selling and administrative expenses		218
Net operating income		86
Nonoperating items:
Gain on sale of investments	$ 6
Loss on sale of equipment	(1)	5
Income before taxes		91
Income taxes		25
Net income		$ 66

During this year, Weaver sold some equipment for $19 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 $6 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $37 of its own stock. This year Weaver did not retire any bonds.

Problem 13-7 Part 1 (Algo)

Required:

1. Using the indirect method, determine the net cash provided by/used in operating activities for this year. (List any deduction in cash and cash outflows as negative amounts.)