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: i ty Accounts $35T Anset and contra-kaset Accounts Cash Accounts receivable Inventory Prepaid expenses Long-term investments Property. plant, and equipment Mccumulated depreciation Liabilities and stockholder 50 Mecounts payable $110 I Accrued liabilities $70 D Income taxes payable $ 91 Bonds payable $ 60 Common stock $185T Retained earnings $ 601 ST $150 0 $ 541 D-Decrease; I - Increase Long-term investments that cost the company $6 were sold during the year for $16 and land that cost $15 was sold for $9. In addition, the company declared and paid $30 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: 5700 400 Coat of goods sold Cromargin Selling and administrative expenses Net operating income Non operating itens Loss on sale of land Cain on sale of investments Theme before taxes The taxes Net Income The company's beginning cash balance was $90 and its ending balance was $85. Required: 3 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. points Complete this question by entering your answers in the tabs below. Required 1 Required 2 eBook 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) Net Income Print Adjustments to convert net income to a cash basis $ References Increase in accounts receivable Decrease in inventory 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 land Depreciation Net cash provided by operating activities Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a statement of cash flows for the year. (List any deduction in cash and cash outflows as neg Pavolik Company Statement of Cash Flows Operating activities: Investing activities: UND III.. UUTUU . . Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents 0