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Application Assignment i Saved The following changes took place last year in Pavolik Company's balance sheet accounts: Asset and Contra-Asset Accounts Liabilities and Stockholders' Equity
Application Assignment i Saved The following changes took place last year in Pavolik Company's balance sheet accounts: Asset and Contra-Asset Accounts Liabilities and Stockholders' Equity Accounts Cash $ 29 D Accounts payable $ 89 I Accounts receivable $ 33 I Accrued liabilities $ 33 D Inventory $ 76 D Income taxes payable $ 38 I Prepaid expenses $ 28 1 Bonds payable $ 276 I Long-term investments $ 30 D Common stock $ 132 D Property, plant, and equipment $ 530 I Retained earnings $ 109 I Accumulated depreciation $ 109 1 D = Decrease; I = Increase. Dok Int Long-term investments that cost the company $30 were sold during the year for $64 and land that cost $63 was sold for $33. In addition, the company declared and paid $27 in cash dividends during the year. Besides the sale of land, no other sales or retirements ences 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: Sales $ 1, 290 Cost of goods sold 572 Gross margin 718 Selling and administrative expenses 510 Net operating income 208 Nonoperating items : Loss on sale of land $ (30 ) Gain on sale of investments 34 Income before taxes 212 Income taxes 76 Net income $ 136 The company's beginning cash balance was $146 and its ending balance was $117. 1 of 10 Next > aw Q Search- Required: 1. Use the indirect method to determine the net cash provided by operating activities for the year. 2. Prepare a statement of cash flows for the year. Complete this question by entering your answers in the tabs below. nts Skipped Required 1 Required 2 eBook Prepare a statement of cash flows for the year. (List any deduction in cash and cash outflows as negative amounts.) Hint Pavolik Company References Statement of Cash Flows Operating activities: Investing activities: Financing activities: Mc Graw Hill Q Search unny
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