Problem 14-7 Prepare a Statement of Cash Flows [LO14-1, LO14-2] [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 2$ $ 12 Cash Accounts receivable 308 229 Inventory Prepaid expenses 156 195 Total current assets 477 442 Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Long-term investments 512 433 (85) (71) 427 362 26 32 $ 930 $836 Total assets Liabilities and Stockholders' Equity $ 301 $224 Accounts payable Accrued liabilities 73 79 Income taxes payable 73 64 Total current liabilities 447 367 Bonds payable 196 171 538 Total liabilities 643 Common stock 162 201 Retained earnings Total stockholders' equity 125 97 287 298 $ 930 $836 Total liabilities and stockholders' equity Weaver Company Income Statement For This Year Ended December 31 $ 751 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of investments 446 305 218 87 $ 6 (2) Loss on sale of equipment 4 Income before taxes 91 Income taxes 24 $ 67 Net income 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 $12 that had cost $6 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. Problem 14-7 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.) Weaver Company Statement of Cash Flows-Indirect Method (partial) Net income 67 Adjustments to convert net income to a cash basis: (146) Depreciation Increase in accounts receivable 79 Decrease in inventory 39 Increase in prepaid expenses 3 Increase in accounts payable 77 Decrease in accrued liabilities Gain on sale of investments Loss on sale of equipment 4 Increase in income taxes payable 77 Net cash provided by operating activities 144