Required information Problem 13-7 Prepare a Statement of Cash Flows [L013-1, 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 Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment $ 27 296 158 9 490 500 85 415 28 $ 12 230 196 Less accumulated depreciation Net property, plant, and equipment Long-term investment:s Total assets 421 70 351 34 $ 933 $829 Liabilities and Stockholders' Equity Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 304 71 73 448 199 647 162 124 286 $ 933 $224 79 64 367 170 537 200 92 292 $829 Weaver Company Income Statement For This Year Ended December 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: $753 446 307 219 Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes Net income (2) 5_ 93 23 $ 70 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 $6 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 Problem 13-7 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 Adjustments to convert net income to a cash basis $ 70 Depreciation Gain on sale of investments Loss on sale of equipment Increase in accounts receivable Increase in income taxes payable (66) (68) 2