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	$	14			$	11
Accounts receivable		294				228
Inventory		159				195
Prepaid expenses		8				6
Total current assets		475				440
Property, plant, and equipment		511				433
Less accumulated depreciation		(83	)			(72	)
Net property, plant, and equipment		428				361
Long-term investments		27				34
Total assets	$	930			$	835
Liabilities and Stockholders' Equity
Accounts payable	$	305			$	226
Accrued liabilities		71				80
Income taxes payable		73				64
Total current liabilities		449				370
Bonds payable		199				171
Total liabilities		648				541
Common stock		162				201
Retained earnings		120				93
Total stockholders equity		282				294
Total liabilities and stockholders' equity	$	930			$	835

Weaver Company Income Statement For This Year Ended December 31
Sales					$	755
Cost of goods sold						449
Gross margin						306
Selling and administrative expenses						219
Net operating income						87
Nonoperating items:
Gain on sale of investments	$	6
Loss on sale of equipment		(3	)			3
Income before taxes						90
Income taxes						24
Net income					$	66

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 $39 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. (List any deduction in cash and cash outflows as negative amounts.)