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

Comparative financial statements for Weaver Company follow:

Weaver Company Comparative Balance Sheet at December 31
	This Year				Last Year
Assets
Cash and cash equivalents	$	11			$	11
Accounts receivable		292				230
Inventory		160				196
Prepaid expenses		8				5
Total current assets		471				442
Property, plant, and equipment		513				434
Less accumulated depreciation		(81	)			(72	)
Net property, plant, and equipment		432				362
Long-term investments		26				33
Total assets	$	929			$	837
Liabilities and Stockholders' Equity
Accounts payable	$	304			$	225
Accrued liabilities		71				79
Income taxes payable		72				65
Total current liabilities		447				369
Bonds payable		198				172
Total liabilities		645				541
Common stock		164				202
Retained earnings		120				94
Total stockholders equity		284				296
Total liabilities and stockholders' equity	$	929			$	837

Weaver Company Income Statement For This Year Ended December 31
Sales					$	753
Cost of goods sold						447
Gross margin						306
Selling and administrative expenses						223
Net operating income						83
Nonoperating items:
Gain on sale of investments	$	6
Loss on sale of equipment		(2	)			4
Income before taxes						87
Income taxes						23
Net income					$	64

During this year, 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. Weaver paid a cash dividend this year and the company repurchased $38 of its own stock. This year Weaver did not retire any bonds.

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.)