Requirement 1: Use the indirect method to determine the jet cash provided by operating activities for the year.

Requirement 2: Prepare a statement of cash flows for the year

The following changes took place last year in Pavolik Company's balance sheet accounts $15 D Accounts Payable $141 Accrued Liabilities $30D Bonds Payable $61 Deferred Income Taxes $30D Common Stock $146 Retained Earnings $221 $9 D $16I $7 I $41 D $26I Cash Accounts Recelvable Prepaid Expenses Long-Term Investments Plant and Equipment $28 D D Decrease:1 Increase Long term investments that had cost the company $30 were sold during the year for $51, and land that had cost $28 was sold for $16. In addition, the year No sales or retirements of plant and equipment took place during the year declared and paid $35 in cash dividends during the Cost of goods sold Gross maign 357 Net operating Income Gain on sale of Invwestments $21 12 Lorss on sale of land Iincome before taxes Income ties Net incomse