A comparative balance sheet and income statement for Eaton Company follow

A comparative balance sheet and income statement for Eaton Company follow:



Eaton Company Comparative Balance Sheet December 31, 2011 and 2010



2011

2010

Assets









Cash

$

4

$

11

Accounts receivable



310



230

Inventory



160



195

Prepaid expenses



8



6



Total current assets



482



442



Property, plant, and equipment



500



420

Less accumulated depreciation



85



70



Net property, plant, and equipment



415



350



Long-term investments



31



38



Total assets

$

928

$

830



Liabilities and Stockholders\' Equity









Accounts payable

$

300

$

225

Accrued liabilities



70



80

Income taxes payable



71



63



Total current liabilities



441



368

Bonds payable



195



170



Total liabilities



636



538



Common stock



160



200

Retained earnings



132



92



Total stockholders’ equity



292



292



Total liabilities and stockholders\' equity

$

928

$

830





Eaton Company Income Statement For the Year Ended December 31, 2011

Sales





$

750

Cost of goods sold







450







Gross margin







300

Selling and administrative expenses







223







Net operating income







77

Nonoperating items:









Gain on sale of investments

$

5





Loss on sale of equipment



(2)



3



Income before taxes







80

Income taxes







24







Net income





$

56









During 2011, Eaton 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 $12 that had cost $7 when purchased several years ago. A cash dividend was paid during 2011 and the company, repurchased $40 of its own stock. Eaton did not retire any bonds during 2011.



Required:

1.

Using the indirect method, determine the net cash for operating activities for 2011. (Negative amount should be entered with a minus sign. Omit the \"$\" sign in your response.)

2.

Using the information in (1) above, along with an analysis of the remaining balance sheet accounts, prepare a statement of cash flows for 2011. (Amounts to be deducted should be indicated with a minus sign. Omit the \"$\" sign in your response.)



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