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I need help with determining the changes in activities and the correct formulas for the dollar amount changes The following changes took place last year
I need help with determining the changes in activities and the correct formulas for the dollar amount changes
The following changes took place last year in Pavolik Company's balance sheet accounts: Asset and Contra-Asset Accounts Cash $ 34 Accounts receivable $ 38 Inventory Prepaid expenses Long-term investments Property, plant, and equipment Accumulated depreciation $ 86 $ 33 Liabilities and Equity Accounts Accounts D $104 payable Accrued I $ 38 liabilities Income taxes D $ 43 payable I Bonds payable $316 I D I I $ 35 D Common stock $152 D $605 I Retained earnings $124 I $124 I D = Decrease; I = Increase. Long-term investments that had cost the company $35 were sold during the year for $74, and land that had cost $73 was sold for $38. In addition, the company declared and paid $32 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 Cost of goods sold $ 1,440 642 Gross margin Selling and administra tive expenses Net operating income Nonoper ating items: Loss o n sale of land Gain on sale of investmen t 798 560 238 $ (35) 39 4 Income before taxes Income taxes Net income 242 86 $ 156 The company's beginning cash balance was $156 and its ending balance was $122. 2*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: 400 Net cash provided by operating activities INVESTING ACTIVITIES: Proceeds from sale of long-term investments Proceeds from sale of land Additions to property, plant & equipment Net cash used in investing activities FINANCING ACTIVITIES: Issuance of bonds payable Cash dividends Purchase of common stock 32 Net cash provided by financing activities Net decrease in cash BEGINNING CASH AND CASH EQUIVALENTS ENDING CASH AND CASH EQUIVALENTS 156Step by Step Solution
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