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

[The following information applies to the questions displayed below.]

Comparative financial statements for Weaver Company follow:

Weaver Company Comparative Balance Sheet at December 31
	This Year				Last Year
Assets
Cash and cash equivalents	$	1			$	13
Accounts receivable		294				229
Inventory		159				195
Prepaid expenses		9				5
Total current assets		463				442
Property, plant, and equipment		509				429
Less accumulated depreciation		(83	)			(70	)
Net property, plant, and equipment		426				359
Long-term investments		28				35
Total assets	$	917			$	836
Liabilities and Stockholders' Equity
Accounts payable	$	302			$	226
Accrued liabilities		72				78
Income taxes payable		72				65
Total current liabilities		446				369
Bonds payable		195				171
Total liabilities		641				540
Common stock		160				202
Retained earnings		116				94
Total stockholders equity		276				296
Total liabilities and stockholders' equity	$	917			$	836

Weaver Company Income Statement For This Year Ended December 31
Sales					$	754
Cost of goods sold						448
Gross margin						306
Selling and administrative expenses						222
Net operating income						84
Nonoperating items:
Gain on sale of investments	$	6
Loss on sale of equipment		(3	)			3
Income before taxes						87
Income taxes						23
Net income					$	64

During this year, Weaver sold some equipment for $18 that had cost $31 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 $42 of its own stock. This year Weaver did not retire any bonds.

Brewer_8e_Rechecks_2020_01_27

Problem 13-7 Part 1

Required:

1. Using the indirect method, determine the net cash provided by/used in operating activities for this year.