EXERCISE 15-4 Prepare a Statement of cash Flows 1.015-1, L015-2 The following changes took place last year in Pavolik Company's balance sheet accounts: Asset and Contra-Asset Accounts Liabilities and Stockholders' Equity Accounts Cash and cash equivalents Accounts payable Accounts receivable Accrued liabilities Inventory $70 D Income taxes payable $8 1 Prepaid expenses Bonds payable $150 1 Long-term investments Common stock SSO D Pronertv nlnnt and enninment MRS T Retained enrninq Accumulated depreciation S60 1 D = Decreaz I = Increase Long-term investments that cost the company $6 were sold during the year for S 16 and land that cost S 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: Page 721 Sales $700 Cost of goods sold 400 Gross margin 300 Selling and administrative expenses Net operating income 116 Nonoperating items: Loss on sale of land $(6) Gain on sale of investments 10 4 Income before taxes 120 Income taxes 36 Net income s 84 The company's beginning cash balance was $90 and its ending balance was $85. Required: l. 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.

EXERCISE 15-4 Prepare a Statement of cash Flows 1.015-1, L015-2 The following changes took place last year in Pavolik Company's balance sheet accounts: Asset and Contra-Asset Accounts Liabilities and Stockholders' Equity Accounts Cash and cash equivalents $5D Accounts payable Accounts receivable $1101 Accrued liabilities Inventory $70 D Income taxes payable $81 Prepaid expenses $91 Bonds payable $1501 SSOD Long-term investments $6D Common stock MRST Pronertv ninnt and enninment Retained enrningq Accumulated depreciation S601 D-Decreas Increase Long-term investments that cost the company $6 were sold during the year for S 16 and land that cost S 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: Page 721 Sales $700 Cost of goods sold 400 300 116 Gross margin Selling and administrative expenses Net operating income Nonoperating items: Loss on sale of land Gain on sale of investments $(6) 10 4 Income before taxes 120 Income taxes 36 Net income 84 The company's beginning cash balance was $90 and its ending balance was $85. 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