Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help!! The following changes took place last year in Pavolik Companys balance sheet accounts: Asset and Contra-Asset AccountsLiabilities and Stockholders' Equity Accounts Cash$ 19DAccounts
Please help!!
The following changes took place last year in Pavolik Company's balance sheet accounts: D=Decrease;I=increase. Long-term investments that cost the company $20 were sold during the year for $44 and land that cost $43 was sold for $23. In addition, the company declared and paid $17 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: The company's beginning cash balance was $126 and its ending balance was $107. Required: 1. Use the indrect method to determine the not cash provided by operating activities for the year. 2. Prepare a statement of cash flows for the year: Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Use the indirect method to determine the net cash provided by operating activities for the year. (Adjustment amounts that are to be deducted should be indicated with a minus sign.) Complete this question by entering your answers in the tabs below. Prepare a statement of cash flows for the year. (Wist any deduction in cash and cash outflows as negative amounts.) The following changes took place last year in Pavolik Companys balance sheet accounts:
Asset and Contra-Asset AccountsLiabilities and Stockholders' Equity Accounts
Cash$ 19DAccounts payable$ 59I
Accounts receivable$ 23IAccrued liabilities$ 23D
Inventory$ 56DIncome taxes payable$ 28I
Prepaid expenses$ 18IBonds payable$ 196I
Long-term investments$ 20DCommon stock$ 92D
Property, plant, and equipment$ 380IRetained earnings$ 79I
Accumulated depreciation$ 79I
D = Decrease; I = Increase.
Long-term investments that cost the company $20 were sold during the year for $44 and land that cost $43 was sold for $23. In addition, the company declared and paid $17 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 companys income statement for the year follows:
Sales $ 990
Cost of goods sold 432
Gross margin 558
Selling and administrative expenses 410
Net operating income 148
Nonoperating items:
Loss on sale of land$ (20)
Gain on sale of investments244
Income before taxes 152
Income taxes 56
Net income $ 96
The companys beginning cash balance was $126 and its ending balance was $107.
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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started