The following changes took place last year in Herald Companys balance sheet accounts:

Asset and Contra-Asset Accounts				Liabilities and Equity Accounts
Cash	$	44	I	Accounts payable	$	56	I
Accounts receivable	$	22	D	Accrued liabilities	$	22	D
Inventory	$	54	I	Income taxes payable	$	27	I
Prepaid expenses	$	17	D	Bonds payable	$	68	D
Long-term investments	$	66	D	Common stock	$	88	I
Property, plant, and equipment	$	240	I	Retained earnings	$	76	I
Accumulated depreciation	$	76	I

D = Decrease; I = Increase.

Long-term investments that had cost the company $110 were sold during the year for $69, and land that had cost $54 was sold for $130. In addition, the company declared and paid $47 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. Herald did not issue any bonds during the year or repurchase any of its own stock.

The companys income statement for the year follows:

Sales			$	960
Cost of goods sold				418
Gross margin				542
Selling and administrative expenses				400
Net operating income				142
Nonoperating items:
Loss on sale of investments	$	(41)
Gain on sale of land		76		35
Income before taxes				177
Income taxes				54
Net income			$	123

The companys beginning cash balance was $112 and its ending balance was $156.

Required:

1.	Using the indirect method, determine the net cash provided by / used in operating activities for the year. (Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.)

Herald Company Statement of Cash Flows (partial)
Operating activities:
(Click to select)DepreciationDecrease in accounts payableLoss on sale of landDecrease in accrued liabilitiesLoss on sale of long-term investmentsDecrease in accounts receivableIncrease in accrued liabilitiesIncrease in inventoryIncrease in accounts receivableIssuance of bonds payableNet incomeGain on sale of landIncrease in inventoryIncrease in accounts payableGain on sale of long-term investments		$
Adjustments to convert net income to cash basis:
(Click to select)Decrease in prepaid expensesIncrease in accounts payableDecrease in accounts receivableIncrease in prepaid expensesIncrease in income taxes payableDecrease in inventoryIncrease in accrued liabilitiesDecrease in accrued liabilitiesNet incomeLoss on sale of long-term investmentsGain on sale of long-term investmentsDepreciationDecrease in accounts payableGain on sale of landIncrease in inventory	$
(Click to select)Increase in prepaid expensesIncrease in accrued liabilitiesIncrease in accounts payableDecrease in accounts payableDecrease in accounts receivableGain on sale of long-term investmentsDepreciationIncrease in income taxes payableDecrease in accrued liabilitiesIncrease in inventoryNet incomeLoss on sale of long-term investmentsGain on sale of landDecrease in inventoryDecrease in prepaid expenses
(Click to select)Decrease in accounts payableDecrease in accrued liabilitiesDecrease in inventoryIncrease in prepaid expensesIncrease in income taxes payableNet incomeDepreciationDecrease in accounts receivableGain on sale of long-term investmentsIncrease in accounts payableGain on sale of landDecrease in prepaid expensesIncrease in inventoryLoss on sale of long-term investmentsIncrease in accrued liabilities
(Click to select)Decrease in accounts receivableIncrease in inventoryLoss on sale of long-term investmentsIncrease in accounts payableNet incomeDecrease in prepaid expensesGain on sale of landDecrease in inventoryIncrease in income taxes payableIncrease in prepaid expensesDepreciationDecrease in accounts payableGain on sale of long-term investmentsDecrease in accrued liabilitiesIncrease in accrued liabilities
(Click to select)Increase in income taxes payableDecrease in accounts receivableIncrease in prepaid expensesIncrease in accrued liabilitiesDecrease in prepaid expensesGain on sale of landDepreciationGain on sale of long-term investmentsNet incomeDecrease in accrued liabilitiesDecrease in inventoryLoss on sale of long-term investmentsIncrease in accounts payableDecrease in accounts payableIncrease in inventory
(Click to select)Increase in income taxes payableLoss on sale of long-term investmentsGain on sale of long-term investmentsDecrease in accrued liabilitiesDepreciationDecrease in prepaid expensesGain on sale of landNet incomeDecrease in accounts payableIncrease in inventoryDecrease in inventoryDecrease in accounts receivableIncrease in prepaid expensesIncrease in accrued liabilitiesIncrease in accounts payable
(Click to select)DepreciationLoss on sale of long-term investmentsDecrease in prepaid expensesIncrease in inventoryIncrease in income taxes payableNet incomeIncrease in accounts payableDecrease in inventoryIncrease in accrued liabilitiesIncrease in prepaid expensesDecrease in accounts receivableGain on sale of long-term investmentsDecrease in accounts payableGain on sale of landDecrease in accrued liabilities
(Click to select)Net incomeDecrease in accrued liabilitiesDecrease in accounts payableDecrease in accounts receivableGain on sale of landIncrease in accrued liabilitiesDecrease in inventoryGain on sale of long-term investmentsDecrease in prepaid expensesIncrease in inventoryDepreciationIncrease in prepaid expensesIncrease in accounts payableLoss on sale of long-term investmentsIncrease in income taxes payable
(Click to select)Loss on sale of long-term investmentsIncrease in prepaid expensesDecrease in accounts receivableIncrease in income taxes payableDecrease in inventoryNet incomeIncrease in accrued liabilitiesGain on sale of long-term investmentsDecrease in accounts payableDecrease in prepaid expensesIncrease in inventoryGain on sale of landDecrease in accrued liabilitiesIncrease in accounts payableDepreciation
Net cash (Click to select)provided byused in operating activities		$

2.	Prepare a statement of cash flows for the year. (Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.)

Herald Company Statement of Cash Flows (partial)
Operating activities:
Net cash (Click to select)used inprovided by operating activities		$
Investing activities:
(Click to select)Cash dividendsGain on sale of landIssuance of common stockIncrease in accounts payableIncrease in prepaid expensesProceeds from sale of long-term investmentsAdditions to long-term investmentsDecrease in prepaid expensesDecrease in accounts receivableAdditions to property, plant & equipmentDecrease in accounts payableIssuance of bonds payableDepreciationProceeds from sale of landIncrease in accounts receivable	$
(Click to select)Cash dividendsAdditions to property, plant & equipmentGain on sale of landIncrease in accounts receivableProceeds from sale of long-term investmentsIncrease in accounts payableIssuance of bonds payableDepreciationDecrease in prepaid expensesIncrease in prepaid expensesDecrease in accounts receivableIssuance of common stockDecrease in accounts payableAdditions to long-term investmentsProceeds from sale of land
(Click to select)Issuance of common stockIncrease in prepaid expensesDecrease in accounts receivableProceeds from sale of long-term investmentsProceeds from sale of landIncrease in accounts receivableCash dividendsIssuance of bonds payableDecrease in prepaid expensesDepreciationDecrease in accounts payableAdditions to property, plant & equipmentGain on sale of landAdditions to long-term investmentsIncrease in accounts payable
(Click to select)Proceeds from sale of landDepreciationGain on sale of landIncrease in accounts receivableIssuance of bonds payableIncrease in prepaid expensesAdditions to property, plant & equipmentProceeds from sale of long-term investmentsAdditions to long-term investmentsIssuance of common stockDecrease in accounts receivableIncrease in accounts payableCash dividendsDecrease in prepaid expensesDecrease in accounts payable
Net cash (Click to select)provided byused in investing activities
Financing activities:
(Click to select)Issuance of common stockRetirement of bonds payableIssuance of bonds payableDepreciationProceeds from sale of long-term investmentsDecrease in prepaid expensesCash dividendsAdditions to long-term investmentsAdditions to property, plant & equipmentIncrease in accounts receivableIncrease in accounts receivableLoss on sale of landIncrease in prepaid expensesDecrease in accounts receivableGain on sale of land
(Click to select)Increase in prepaid expensesProceeds from sale of long-term investmentsIssuance of bonds payableIssuance of common stockIncrease in accounts receivableDecrease in accounts receivableGain on sale of landIncrease in accounts receivableDepreciationAdditions to long-term investmentsAdditions to property, plant & equipmentDecrease in prepaid expensesCash dividendsRetirement of bonds payableLoss on sale of land
(Click to select)Increase in prepaid expensesIncrease in accounts receivableDepreciationIncrease in accounts receivableAdditions to property, plant & equipmentGain on sale of landAdditions to long-term investmentsLoss on sale of landIssuance of common stockCash dividendsIssuance of bonds payableRetirement of bonds payableDecrease in accounts receivableDecrease in prepaid expensesProceeds from sale of long-term investments
Net cash (Click to select)provided byused in financing activities
(Click to select)Net increase in cashNet decrease in cash
Cash balance, beginning
Cash balance, ending		$