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Comparative financial statements for Weaver Company follow:

Weaver Company Comparative Balance Sheet at December 31
	This Year				Last Year
Assets
Cash	$	24			$	12
Accounts receivable		306				229
Inventory		155				194
Prepaid expenses		8				6
Total current assets		493				441
Property, plant, and equipment		511				432
Less accumulated depreciation		(85	)			(72	)
Net property, plant, and equipment		426				360
Long-term investments		26				32
Total assets	$	945			$	833
Liabilities and Stockholders' Equity
Accounts payable	$	303			$	225
Accrued liabilities		73				80
Income taxes payable		74				63
Total current liabilities		450				368
Bonds payable		200				170
Total liabilities		650				538
Common stock		164				200
Retained earnings		131				95
Total stockholders’ equity		295				295
Total liabilities and stockholders' equity	$	945			$	833

Weaver Company Income Statement For This Year Ended December 31
Sales					$	753
Cost of goods sold						445
Gross margin						308
Selling and administrative expenses						218
Net operating income						90
Nonoperating items:
Gain on sale of investments	$	7
Loss on sale of equipment		(2	)			5
Income before taxes						95
Income taxes						23
Net income					$	72

During this year, Weaver sold some equipment for $18 that had cost $30 and on which there was accumulated depreciation of $10. In addition, the company sold long-term investments for $13 that had cost $6 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $36 of its own stock. This year Weaver did not retire any bonds.

Required:

1. Using the indirect method, determine the net cash provided by/used in operating activities for this year. (List any deduction in cash and cash outflows as negative amounts.)

Weaver Company
Statement of Cash Flows—Indirect Method (partial)

Answer 1

Cash flows from Operating activities:
Net income for the period				72.00
Adjustment required for reconciliation
Gain on sale of Investment				-7.00
Loss on sale of Equipment				2
Depreciation (72-10-85)				23
Increase in Accounts receivable				-77
Decrease n Inventory				39.00
Increase in Pprepaid expense				-2.00
Increase in Accounts payable				78
Decrease in Accrued liability				-7
Increase in Income tax payable				11
Net cash provided from Operating activitites				132.00