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The following changes took place last year in Pavolik Company's balance sheet accounts: Asset and Contra-Asset Bic-counts Liabilities and Stockholders' Equity Accounts Cash $ 17 1} Accounts payable $ 53 I Accounts receivable $ 21 I Accrued liabilities 5 21 D Inventoryr $ 52 1} Income taxes payable $ 26 I Prepaid expenses $ 16 I Bonds payable $130 I Longterm investments $ 18 B Common stock $ E4 D Property, plant, and equipment $350 I Retained earnings $ T3 I Accumulated depreciation $ 73 I | D = Decrease; | = Increase. Long-term investments that cost the company $18 were sold during the year for $40 and land that cost $39 was sold for $21. In addition, the company declared and paid $15 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 5930 Cost of goods sold 404 Gross margin 526 Selling and administrative expenses 39!:- Het operating income 136 Honop-erating items: Loss on sale of land $[13] Gain on sale of investments 22 4 Income before taxes 140 Income taxes 52 Net income 5 33 l The company's beginning cash balance was $122 and its ending balance was $105. Required: 1. Use the indirect method to determine the net cash provided by operating activities for the year. 2. Prepare a statement of cash ows 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 amou to be deducted should be indicated with a minus sign.) Pavolik Company Statement of Cash Flows (partial) 0 0
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 negative amounts.) Pavolik Company Statement of Cash Flows Operating activities: Investing activities: 0 Financing activities: 0 0 Beginning cash and cash equivalents Ending cash and cash equivalents $ 0