Required information

1. [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	$	13			$	11
Accounts receivable		291				229
Inventory		159				194
Prepaid expenses		8				5
Total current assets		471				439
Property, plant, and equipment		510				430
Less accumulated depreciation		(81	)			(71	)
Net property, plant, and equipment		429				359
Long-term investments		26				33
Total assets	$	926			$	831
Liabilities and Stockholders' Equity
Accounts payable	$	300			$	225
Accrued liabilities		70				78
Income taxes payable		72				64
Total current liabilities		442				367
Bonds payable		200				171
Total liabilities		642				538
Common stock		163				201
Retained earnings		121				92
Total stockholders equity		284				293
Total liabilities and stockholders' equity	$	926			$	831

Weaver Company Income Statement For This Year Ended December 31
Sales					$	752
Cost of goods sold						446
Gross margin						306
Selling and administrative expenses						221
Net operating income						85
Nonoperating items:
Gain on sale of investments	$	6
Loss on sale of equipment		(1	)			5
Income before taxes						90
Income taxes						23
Net income					$	67

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 $13 that had cost $7 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $38 of its own stock. This year Weaver did not retire any bonds.

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	$	13			$	11
Accounts receivable		291				229
Inventory		159				194
Prepaid expenses		8				5
Total current assets		471				439
Property, plant, and equipment		510				430
Less accumulated depreciation		(81	)			(71	)
Net property, plant, and equipment		429				359
Long-term investments		26				33
Total assets	$	926			$	831
Liabilities and Stockholders' Equity
Accounts payable	$	300			$	225
Accrued liabilities		70				78
Income taxes payable		72				64
Total current liabilities		442				367
Bonds payable		200				171
Total liabilities		642				538
Common stock		163				201
Retained earnings		121				92
Total stockholders equity		284				293
Total liabilities and stockholders' equity	$	926			$	831

Weaver Company Income Statement For This Year Ended December 31
Sales					$	752
Cost of goods sold						446
Gross margin						306
Selling and administrative expenses						221
Net operating income						85
Nonoperating items:
Gain on sale of investments	$	6
Loss on sale of equipment		(1	)			5
Income before taxes						90
Income taxes						23
Net income					$	67

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 $13 that had cost $7 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $38 of its own stock. This year Weaver did not retire any bonds.

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.)

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) 0 Weaver Company Statement of Cash Flows For This Year Ended December 31 Operating activities: Investing activities: Financing activities: ties: Beginning cash and cash equivalents Ending cash and cash equivalents 0