1. Use the indirect method to determine the net cash provided by operating activities for the year and prepare a statement of cash flows for the year.

The following changes took place last year in Pavolik Company's balance sheet accounts: Liabilities and Stockholders' Equity Accounts Accounts payable Asset and Contra-Asset Accounts $ 35 D $ 39 I $ 88 D $ 34 I $ 36 D $ 620 I $ 127 I Cash and cash equivalents S107 I $ 39 D $ 44 I $ 324 I Accounts receivable Accrued liabilities Inventory Income taxes payable Bonds payable Prepaid expenses Long-term investments Property, plant, and equipment Accumulated depreciation $156 D Common stock $ 127 I Retained earnings D = Decrease; I = Increase. Long-term investments that cost the company $36 were sold during the year for $76 and land that cost $75 was sold for $39. In addition, the company declared and paid $33 in cash dividends during the year. Besides the sale of land, no other sales or retirements of plant and equipment took place during the year. Pavolik did not retire any bonds during the year or issue any new common stock. The company's income statement for the year follows: $1,470 Sales Cost of goods sold Gross margin Selling and administrative expenses 656 814 570 Net operating income Nonoperating items: Loss on sale of land 244 $ (36) Gain on sale of investments 40 4 Income before taxes 248 88 Income taxes $ 160 Net income The company's beginning cash balance was $158 and Its ending balance was $123. Required: |1. Use the Indirect method to determine the net cash provided by operating activitles for the year. 2. Prepare a statement of cash flows for the year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Use the indirect method to determine the net cash provided by operating activities for the year. (Adjustment amounts that are to be deducted should be indicated with a minus sign.) Pavolik Company Statement of Cash Flows (partial) Net income 160 Adjustments to convert net income to a cash basis: Increase in accounts receivable (39) 88 Decrease in inventory Increase in prepaid expenses (34) Increase in accounts payable 107 (39) Decrease in accrued liabilities Increase in income taxes payable 44 127 287 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a statement of cash flows for the year. (List any deduction in cash and cash outflows as negative amounts.) Pavolik Company Statement of Cash Flows Operating activities: Net cash provided by operating activities Investing activities: 243 Financing activities: 243 Beginning cash and cash equivalents Ending cash and cash equivalents 243