En. The following changes took place last year in Pavolik Company's balance sheet accounts: $ BOI Asset and Contra-Asset Accounts Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Long-term investments Property, plant, and equipment Accumulated depreciation Liabilities and Stockholders' Equity Accounts Accounts payable $ 301 Accrued liabilities $ 30 D $700 Income taxes payable $35 T $25 I Bonds payable $252 T $ 27 D Common stock $120 D $485 I Retained earnings $1001 $100 I D=Decrease; 1 = Increase Long-term investments that cost the company $27 were sold during the year for $58 and land that cost $57 was sold for $30. In addition, the company declared and paid $24 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: $1,200 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items! Loss on sale of land Gain on sale of investments Income before taxes Income taxes Net income The company's beginning cash balance was $140 and its ending balance was $114. 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. Required 1 Required 2 Use the indirect method to determine the net cash provided by operating activities for the year. (Ad to be deducted should be indicated with a minus sign.) Pavolik Company Statement of Cash Flows (partial) Net income Depreciation Increase in accounts receivable Decrease in income taxes payable Increase in prepaid expenses Increase in accounts payable Decrease in accrued liabilities Increase in income taxes payable Gain on sale of long-term investments Loss on sale of long-term investments Loss on sale of land Net cash provided by operating activities 0 (Required 1 Required 2 > Prepare a statement of cash flows for the year. (List any deduction in cash and cash outflo Pavolik Company Statement of Cash Flows Operating activities: Investing activities: 20 Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents $ 0 Required 1 Required 2 >