The company's income statement for the year follows: $870 376 494 370 124 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Loss on sale of land Gain on sale of investments Income before taxes Income taxes Net income $(16) 20 4 128 48 $ 80 The company's beginning cash balance was $118 and its ending balance was $103. Required: 1. Use the indirect method to determine the net cash provided by opedating activities for the year. 2. Prepare a statement of cash flows for the year. Required 1 Required 2 Use the indirect method to determine the net cash provided by operating activities for the y to be deducted should be indicated with a minus sign.) Pavolik Company Statement of Cash Flows (partial) Net income Adjustments to convert net income to a cash basis: Depreciation Increase in accounts receivable Decrease in inventory Increase in prepaid expenses Increase in accounts payable Decrease in accrued liabilities Gain on sale of long-term investments Loss on sale of land Increase in income taxes payable Net cash provided by operating activities 0 CA 0 Required 2 > Prepare a statement of cash flows for the year. (List any deduction In cash and cash ou Pavolik Company Statement of Cash Flows Operating activities: Investing activities: 0 Financing activities: 0 0 Beginning cash and cash equivalents Ending cash and cash equivalents $ 0