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	$	22			$	11
Accounts receivable		292				230
Inventory		156				194
Prepaid expenses		8				5
Total current assets		478				440
Property, plant, and equipment		513				434
Less accumulated depreciation		(81	)			(71	)
Net property, plant, and equipment		432				363
Long-term investments		25				32
Total assets	$	935			$	835
Liabilities and Stockholders' Equity
Accounts payable	$	304			$	224
Accrued liabilities		72				79
Income taxes payable		74				64
Total current liabilities		450				367
Bonds payable		200				171
Total liabilities		650				538
Common stock		161				201
Retained earnings		124				96
Total stockholders equity		285				297
Total liabilities and stockholders' equity	$	935			$	835

Weaver Company Income Statement For This Year Ended December 31
Sales					$	755
Cost of goods sold						446
Gross margin						309
Selling and administrative expenses						220
Net operating income						89
Nonoperating items:
Gain on sale of investments	$	6
Loss on sale of equipment		(2	)			4
Income before taxes						93
Income taxes						25
Net income					$	68

During this year, 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 $13 that had cost $7 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $40 of its own stock. This year Weaver did not retire any bonds.

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

2. Using the information from Part 1, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for this year. (List any deduction in cash and cash outflows as negative amounts.)