Asset and Contra-Asset Accounts Cash Accounts receivable Inventory Prepaid expenses Long-term investments Property, plant, and equipment Accumulated depreciation D = Decrease; I = Increase. Liabilities and Stockholders' Equity Accounts $ 6 D Accounts payable $ 20 I $ 10 I Accrued liabilities $ 10 D $ 30 D Income taxes payable $ 15 I $ 5 I Bonds payable $ 97 I $ 7 D Common stock $ 40 D $ 180 I Retained earnings $ 30 I $ 40 I Long-term investments that cost the company $7 were sold during the year for $18 and land that cost $17 was sold for $10. In addition, the company declared and paid $14 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: Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Loss on sale of land $ 600 250 350 280 70 $ (7) 11 4 74 30 $ 44 Gain on sale of investments Income before taxes Income taxes Net income The company's beginning cash balance was $100 and its ending balance was $94. 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.