Response to the following problem:
Comparative financial statements for Weaver Company Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet December 31, 2014 and 2013
2014 2013
Assets
Cash $ 6 $ 12
Accounts receivable 305 228
Inventory 160 196
Prepaid expenses 9 5
Total current assets 480 441
Property, plant, and equipment 511 432
Less accumulated depreciation (86) (71)
Net property, plant, and equipment 425 361
Long-term investments 27 33
Total assets $ 932 $ 835
Liabilities and Stockholders'
Equity Accounts payable $ 303 $ 225
Accrued liabilities 72 80
Income taxes payable 72 65
Total current liabilities 447 370
Bonds payable 195 170
Total liabilities 642 540
Common stock 163 201
Retained earnings 127 94
Total stockholders' equity 290 295
Total liabilities and stockholders' equity $ 932 $ 835
Weaver Company Income Statement For the Year Ended December 31, 2014
Sales $ 753
Cost of goods sold 445
Gross margin 308
Selling and administrative expenses 220
Net operating income 88 Nonoperating items:
Gain on sale of investments $ 7
Loss on sale of equipment (1) 6
Income before taxes 94
Income taxes 23
Net income $ 71
During 2014, Weaver sold some equipment for $19 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. A cash dividend was paid during 2014 and the company repurchased $38 of its own stock. Weaver did not retire any bonds during 2014. Required information
Required:
1. Using the indirect method, determine the net cash for operating activities for 2014. (Negative amount should be entered with a minus sign.)
2. Using the information in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for 2014. (List any deduction in cash and cash outflows as negative amounts.)