During 2011, Eaton sold some equipment for $16 that had cost $46 and on which there was accumulated depreciation of $27. In addition, the company sold long-term investments for $44 that had cost $39 when purchased several years ago. A cash dividend was paid during 2011 and the company repurchased $80 of its own stock. Eaton did not retire any bonds during 2011.
See the attachment.
This solution illustrates how to convert an income statement from accrual basis to cash basis and how to prepare a statement of cash flows using the direct method.