Required:

1. Using the direct method, adjust the companys 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.

Comparative financial statements for Weaver Company follow: During this year, Weaver sold some equipment for $13 that had cost $43 and on which there was accumulated depreciation of $24. In addition, the company sold long-term investments for $38 that had cost $29 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $79 of its own stock. This year Weaver did not retire any bonds. 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.) 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. (Cash outflows and amounts to be deducted should be indicated with a minus sign.)