Weaver Company
Direct Method of Determining the Net Cash flows from Operating activities
Sales	$730
Adjustments to a cash basis:
Increase in accounts receivable	(80)
		650
Cost of goods sold
Adjustments to a cash basis:
		0
Selling and administrative expenses
Adjustments to a cash basis:
		0
Income taxes
Adjustments to a cash basis:
		0
Net cash provided by operating activities		$650

Weaver Company
Statement of Cash Flows
For This Year Ended December 31
Operating activities:
Cash received from customers
Less cash disbursements for:
Total cash disbursements		0
Net cash provided by operating activities		0
Investing activities:
Net cash used for investing activities		0
Financing activities:
		0
Net decrease in cash		0
Beginning cash and cash equivalents
Ending cash and cash equivalents		$0

Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment $ 13 23e 165 318 431 414 438 4e Less accumulated depreciation Net property, plant, and equipment Long-term investments Total assets s944 $ 837 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 s 258 $ 215 63 358 130 488 123 49 349 $ 837 Total liabilities and stockholders' equity 944 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 $730 415 315 Gain on sale of investments $ 15 Loss on sale of equipment Income before taxes Income taxes Net income (6 _9 $ 84 During this year, Weaver sold some equipment for $13 that had cost $34 and on which there was accumulated depreciation of $15. In addition, the company sold long-term investments for $20 that had cost $5 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $74 of its own stock. This year Weaver did not retire any bonds. 2 Requlrec: 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