Exercise 15-4 (Algoi Prepare a Statement of Cash Flows [LO15-1, L015-2] The following changes took place last year in Pavolik Company's balance sheet accounts: Asset and ContraAsset Accounts Liabilities and Stockholders' Equity Accounts Cash $ 18 D Accounts payable $ 32] Accounts receivable $ 14 I Accrued liabilities $ 14 D Inventory $ 33 D Income taxes payable $ 191 Prepaid expenses $ 9 I Bonds payable $ 1241 Long-term investments $ 11 D Common stock $ 56 D Property, plant, and equipment $ 245 I Retained earnings $ 521 Accumulated depreciation $ 52 I D = Decrease; | = Increase. Longterm investments that cost the company $11 were sold during the year for $26 and land that cost $25 was sold for $14. In addition, the company declared and paid $8 in cash dividends during the year. Besides the sale ofland, 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 co mpany's income statement for the year follows: Sales $ 726 Cost of goods sold 396 Gross margin 414 Selling and administrative expenses 329 Net operating income 94 Nonoperating items: Loss on sale of land $ (11} Gain on sale of investments 15 4 Income before taxes 98 Income taxes 38 Net income $ 59 The company's beginning cash balance was $108 and its ending balance was $98. 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 te tabs below. Required 1 Required 2 Use the Indirect method to determine the net cash provided by operating activities for the veer. [Adjustment amounts that are to be deducted should be indicated with a minus sign.) _ __ __ _- ___ __ -_ ___ __ _-_ ___ E__ __ Drop down options for box 1: contribution margin, gross margin, net income. or sales Drop down options for box 2: adjustments to convert contribution margin to a cash basis adjustments to convert gross margin adjustments to convert net income to a cash basis adjustments to convert sales to a cash basis