Complete this question by entering your answers in the tabs below. Required Required 0/2 points awarded 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.) Scored Pavolik Company Statement of Cash Flows (partial) eBook Hint 88888888888 Print $*$*$*$% Reference S 0 Required Required 2 > *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. Explanation Net cash provided by operating activities: Step 1: The company did not sell or retire any plant and equipment during the year and is not depreciated: therefore, the $67 increase in Accumulated Depreciation equals the credit to the account that is added to net Income Step 2: The following table can be used to analyze the changes in noncash balance sheet accounts that impacts net Income as follows: Increase Decrease in Accountin Account Balance Balance - 19 Current Assets Accounts receivable Inventory Prepaid expenses +48 - 14 Current Liabilities Accounts payable Accrued liabilities Income taxes payable 0/2 Step 3: The loss on sale of investments ($20) is added to net income and the gain on the sale of land ($16) is subtracted from net income. points awarded Scored Investing and Financing activities: eBook The following table can be used to analyze the changes in noncash balance sheet accounts that impacts Investing and financing cash flows as follows: Hint Print Increase Decrease in Account in Account Balance Balance Reference Noncurrent Assets Property, plant, and equipment Long-term investments -320 +16 Liabilities and Stockholders' Equity Bonds payable Common stock +164 Because Pavolik did not retire any bonds or issue any of its own stock during the year, the corresponding amounts in the table represent the gross cash flows that are included in the statement of cash flows. Property, plant, and equipment, long-term investments, and retained earnings require further analysis as follows: Property, plant, and Equipment Sale of Additions 355 land Change 3201 35 The statement of cash flows must report the gross cash outflow of $355 and the grass cash inflow related to the sale of land of $19. Long-Term Investments Additions Sale Change 16 16 The statement of cash flows must report the gross cash inflow related to the sale of the investment of $36. The company did not purchase any long-term investments during the year. Retained Earnings Net Dividends income change The statement of cash flows must report the dividend payment of $13