Exercise 14-4 Prepare a Statement of Cash Flows [LO14-1, LO14-2] The following changes took place last year in Pavolik Company's balance sheet accounts: Liabilities and Stockholders' Equity Asset and Contra -Asset Accounts d Accounts Accounts payable Accrued liabilities Cash Accounts receivable Inventory Prepaid expenses Long-term investments Property, plant, and equipment $560 I Accumulated depreciation $31 D 35 I $80 D $ 30 I $ 32 D $95 I $ 35 D $ 40 I $292 I Income taxes payable Bonds payable Common stock Retained earnings $140 D $115 I $115 I ces D Decrease; I= Increase. Long-term investments that cost the company $32 were sold during the year for $68 and land that cost $67 was sold for $35. In addition, the company declared and paid $29 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: The company's income statement for the year follows: Sales $1,350 Cost of goods sold Gross margin Selling and administrative 600 750 530 expenses Net operating income Nonoperating items: Loss on sale of land 220 $(32) Gain on sale of investments Income before taxes 36 4 224 Income taxes 80 $ 144 Net income The company's beginning cash balance was $150 and its ending balance was $119. 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. 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) mces Pequired Required 2 Prepare a statement of cash flows for the year. (List any deduction in cash and cash outflows as negative amounts.) ed Pavolik Company Statement of Cash Flows Operating activities: ook int Investing activities Print erences Financing activities C Beginning cash and cash equivalents Ending cash and cash equivalents