See attached file

A comparative balance sheet and income statement for Eaton Company follow: Eaton Company Comparative Balance Sheet December 31, 2011 and 2010 2011 Assets Cash Accounts receivable Inventory Prepaid expenses $ 41 2010 $ 17 306 229 159 195 8 6 514 447 530 451 85 70 Net property, plant, and equipment 445 381 Longterm investment s 27 33 Total current assets Property, plant, and equipment Less accumulat ed depreciatio n Total assets Liabilitie s and Stockhold ers' equity Accounts payable Accrued liabilities Income taxes payable Total current $ 986 $ 861 $ 302 $ 225 71 79 73 64 446 368 liabilities Bonds payable 200 646 Total liabilities and stockholde rs' equity $ 94 340 Total stockholde rs' equity 227 134 Common stock Retained earnings 540 206 Total liabilities 172 321 986 $ Eaton Company Income Statement For the Year Ended December 31, 2011 Sales $ 751 Cost of goods 448 sold Gross margin Selling and administ rative expense s Net operatin g income Nonop erating items: Gain on sale of investm ents Loss 303 222 81 $ 6 (2) 4 861 on sale of equipme nt Income before taxes Income taxes Net income 85 24 $ 61 During 2011, Eaton 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. A cash dividend was paid during 2011 and the company, repurchased $21 of its own stock. Eaton did not retire any bonds during 2011. Required: 1. Using the indirect method, determine the net cash for operating activities for 2011. (Negative amount should be entered with a minus sign.) Net cash operating activities $ 2. Using the information in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for 2011. (Amounts to be deducted and negative amounts should be indicated with a minus sign.) Eaton Company Statement of Cash Flows For the Year Ended December 31, 2011 Operating activities: $ Adjustments to convert net income to cash basis: $ Net cash operating activities Investing activities: Net cash investing activities Financing activities: Net cash financing activities Cash balance, January 1, 2011 Cash balance, December 31, 2011 $