Prepare a Statement of Cash Flows [LO14-1, LO14-2] The following changes took place last year in Pavolik Company's balance sheet accounts: Asset and Contra-Asset Accounts Liabilities and Equity Accounts Cash $ 22 D Accounts payable $ 68 I Accounts receivable $ 26 I Accrued liabilities $ 26 D Inventory $ 62 D Income taxes payable $ 31 I Prepaid expenses $ 21 I Bonds payable $ 220 I Long-term investments $ 23 D Common stock $ 104 D Property, plant, and equipment $ 425 I Retained earnings $ 88 I Accumulated depreciation $ 88 I D = Decrease; I = Increase. Long-term investments that had cost the company $23 were sold during the year for $50, and land that had 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 $1,080 Cost of goods sold 474 Gross margin 606 Selling and administrative expenses 440 Net operating income 166 Nonoperating items: Loss on sale of land $(23) Gain on sale of investment 27 4 Income before taxes 170 Income taxes 62 Net income $ 108 The company's beginning cash balance was $132 and its ending balance was $110