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
Cash	$	16			$	13
Accounts receivable		290				230
Inventory		159				194
Prepaid expenses		9				6
Total current assets		474				443
Property, plant, and equipment		508				428
Less accumulated depreciation		(83	)			(71	)
Net property, plant, and equipment		425				357
Long-term investments		28				34
Total assets	$	927			$	834
Liabilities and Stockholders' Equity
Accounts payable	$	305			$	224
Accrued liabilities		73				79
Income taxes payable		75				65
Total current liabilities		453				368
Bonds payable		196				171
Total liabilities		649				539
Common stock		161				201
Retained earnings		117				94
Total stockholders equity		278				295
Total liabilities and stockholders' equity	$	927			$	834

Weaver Company Income Statement For This Year Ended December 31
Sales					$	753
Cost of goods sold						449
Gross margin						304
Selling and administrative expenses						223
Net operating income						81
Nonoperating items:
Gain on sale of investments	$	6
Loss on sale of equipment		(1	)			5
Income before taxes						86
Income taxes						23
Net income					$	63

During this year, Weaver sold some equipment for $19 that had cost $30 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 $40 of its own stock. This year Weaver did not retire any bonds.

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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.)