Exercise 15-4 (Algo) Prepare a Statement of Cash Flows [LO15-1, LO15-2]

The following changes took place last year in Pavolik Company's balance sheet accounts: Asset and ContraAsset Accounts Liabilities and Stockholders' Equity Accounts Cash $ 14 D Accounts payable $ 44 I Accounts receivable $ 18 I Accrued liabilities $ 18 D Inventory $ 46 D Income taxes payable $ 23 I Prepaid expenses $ 13 I Bonds payable $ 156 I Long-term investments $ 15 D Common stock $ 72 D Property, plant, and equipment $ 305 I Retained earnings $ 64 I Accumulated depreciation $ 64 I D = Decrease; | = Increase. Longterm investments that cost the company $15 were sold during the year for $34 and land that cost $33 was sold for $18. In addition, the company declared and paid $12 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 $ 840 Cost of goods sold 362 Gross margin 478 Selling and administrative expenses 360 Net operating income 118 Nonoperating items: Loss on sale of land 3 (15) Gain on sale of investments 19 4 Income before taxes 122 Income taxes 46 Net income $ 7 6 The company's beginning cash balance was $116 and its ending balance was $102. 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. Required 1 Required 2 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.) Operating activities: Investing activities: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents