omework Problems i Saved Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year $ $ 3 410 145 6 564 590 100 490 18 18 280 190 4 492 480 90 390 38 $1,072 $ 920 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Long-term investments Total assets 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 $ $ 300 60 75 435 275 710 222 140 240 70 68 378 180 558 300 62 362 920 362 $1,072 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! Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes Net income $ 780 440 340 209 131 $ 10 (1) 9 140 42 $ 98 During this year, Weaver sold some equipment for $18 that had cost $39 and on which there was accumulated depreciation of $20. In addition, the company sold long-term investments for $30 that had cost $20 when purchased several years ago Weaver paid a cash dividend this year and the company repurchased $78 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