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Problem 13-7 (Algo) Prepare a Statement of Cash Flows [LO13-1, LO13-2]

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Comparative financial statements for Weaver Company follow:

Weaver Company Comparative Balance Sheet at December 31
	This Year	Last Year
Assets
Cash	$ 16	$ 12
Accounts receivable	292	231
Inventory	151	195
Prepaid expenses	8	5
Total current assets	467	443
Property, plant, and equipment	508	428
Less accumulated depreciation	(83)	(72)
Net property, plant, and equipment	425	356
Long-term investments	27	34
Total assets	$ 919	$ 833
Liabilities and Stockholders' Equity
Accounts payable	$ 301	$ 225
Accrued liabilities	72	78
Income taxes payable	72	63
Total current liabilities	445	366
Bonds payable	195	171
Total liabilities	640	537
Common stock	162	202
Retained earnings	117	94
Total stockholders equity	279	296
Total liabilities and stockholders' equity	$ 919	$ 833

Weaver Company Income Statement For This Year Ended December 31
Sales		$ 752
Cost of goods sold		447
Gross margin		305
Selling and administrative expenses		223
Net operating income		82
Nonoperating items:
Gain on sale of investments	$ 6
Loss on sale of equipment	(2)	4
Income before taxes		86
Income taxes		23
Net income		$ 63

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.

Problem 13-7 Part 1 (Algo)

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.)