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Only need req 2 The following changes took place last year in Pavolik Company's balance sheet accounts Liabilities and Stockholders' Equity Accounts Asset and Contra-Asset
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The following changes took place last year in Pavolik Company's balance sheet accounts Liabilities and Stockholders' Equity Accounts Asset and Contra-Asset Accounts Cash Accounts receivable Inventory Prepaid expenses Long-term investments Property, plant, and equipment Accum $22 D Accounts payable 261 Accrued liabilities $62 D Income taxes payable $21I Bonds payable $ 23 D Common stock $425 I Retained earnings $ 88 I $ 68 I $ 26 D $ 31 I $220 I 104 D $ 88 ulated depreciation D-Decrease: I = Increase Long-term investments that cost the company $23 were sold during the year for $50 and land that cost $49 was sold for $26. In addition, the company declared and paid $20 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 Gross margin Selling and administrative expenses Net operating income Nonoperating items: $1,080 474 606 440 166 Loss on sale of land (23) 27 Gain on sale of investments Income before taxes Income taxes Net income 170 62 $ 108 Complete this question by entering your answers in the tabs below. Required 1Required 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 Net cash provided by operating activities nvesting activities: Proceeds from sale of long-term investments Proceeds fr Additions to property, plant & equipment 280 50 om sale of land 26 76 Financing activities: 356 Beginning cash and cash equivalents Ending cash and cash equivalents 356 The company's beginning cash balance was $132 and its ending balance was $110 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 yearStep by Step Solution
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