Weaver Company Comparative Balance Sheet at December 31 This Last Year Year Assets Cash $ 14 $ 21 Accounts receivable 470 310 Inventory 165 205 Prepaid expenses 9 7 Total current assets 658 543 Property, plant, and equipment 620 510 Less accumulated depreciation 115 60 Net property, plant, and equipment Long-term investments 505 450 18 41 $ $ Total assets Liabilities and Stockholders' Equity 1,181 1,034 Bonds payable Accounts payable Accrued liabilities Income taxes payable Total current liabilities Total liabilities Common stock $ 330 $ 255 25 40 78 71 433 366 290 210 723 576 319 400 Retained earnings Total stockholders' equity Total liabilities and stockholders' 139 58 458 458 $ $ equity 1,181 1,034 Weaver Company Income Statement For This Year Ended December 31 Sales $810 Cost of goods sold 455 Gross margin 355 Selling and administrative 231 expenses Net operating income 124 Nonoperating items: $ Gain on sale of investments 13 Loss on sale of equipment (7) 6 130 39 $ 91 Income before taxes Income taxes Net income During this year, Weaver sold some equipment for $12 that had cost $42 and on which there was accumulated depreciation of $23. In addition, the company sold long-term investments for $36 that had cost $23 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $81 of its own stock. This year Weaver did not retire any bonds. Required: 1. Using the direct method, adjust the company's income statement for this year to a cash basis. 2. Using the Information obtained in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for this year. Complete this question by entering your answers in the tabs below. Required Required 2 Using the direct method, adjust the company's income statement for this year to a cash basis. (Adjustment amounts that are to be deducted should be indicated with a minus sign.) Weaver Company Direct Method of Determining the Net Cash flows from Operating activities Adjustments to a cash basis: Adjustments to a cash basis: 0 0 Selling and administrative expenses Adjustments to a cash basis: