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

Asset and Contra-Asset Accounts				Liabilities and Equity Accounts
Cash	$	78	I	Accounts payable	$	107	I
Accounts receivable	$	39	D	Accrued liabilities	$	39	D
Inventory	$	88	I	Income taxes payable	$	44	I
Prepaid expenses	$	34	D	Bonds payable	$	136	D
Long-term investments	$	117	D	Common stock	$	156	I
Property, plant, and equipment	$	410	I	Retained earnings	$	127	I
Accumulated depreciation	$	127	I

D = Decrease; I = Increase.

Long-term investments that had cost the company $195 were sold during the year for $103, and land that had cost $88 was sold for $215. In addition, the company declared and paid $64 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			$	1,470
Cost of goods sold				656
Gross margin				814
Selling and administrative expenses				570
Net operating income				244
Nonoperating items:
Loss on sale of investments	$	(92)
Gain on sale of land		127		35
Income before taxes				279
Income taxes				88
Net income			$	191

The companys beginning cash balance was $129 and its ending balance was $207.

Required:

1.	Using the indirect method, determine the net cash provided by / used in operating activities for the year.(Amounts to be deducted and negative amounts should be indicated with a minus sign.)

Herald Company Statement of Cash Flows (partial)
Operating activities:
(Click to select)Net lossNet income		$
Adjustments to convert net income to cash basis:
(Click to select)DepreciationIncrease in accounts payableIncrease in inventoryDecrease in accrued liabilitiesGain on sale of landDecrease in prepaid expensesDecrease in accounts payableIncrease in accrued liabilitiesIncrease in income taxes payableLoss on sale of long-term investmentsDecrease in accounts receivable	$
(Click to select)Gain on sale of landDecrease in accounts receivableDecrease in accrued liabilitiesDecrease in accounts payableLoss on sale of long-term investmentsIncrease in inventoryIncrease in accounts payableDepreciationDecrease in prepaid expensesIncrease in income taxes payableIncrease in accrued liabilities
(Click to select)DepreciationIncrease in accrued liabilitiesIncrease in accounts payableDecrease in prepaid expensesIncrease in income taxes payableIncrease in inventoryDecrease in accounts payableLoss on sale of long-term investmentsDecrease in accounts receivableDecrease in accrued liabilitiesGain on sale of land
(Click to select)Decrease in accounts receivableIncrease in inventoryGain on sale of landIncrease in income taxes payableDecrease in accounts payableDepreciationIncrease in accounts payableLoss on sale of long-term investmentsDecrease in accrued liabilitiesIncrease in accrued liabilitiesDecrease in prepaid expenses
(Click to select)Increase in accounts payableIncrease in income taxes payableDepreciationIncrease in inventoryDecrease in accrued liabilitiesGain on sale of landDecrease in accounts payableIncrease in accrued liabilitiesDecrease in accounts receivableDecrease in prepaid expensesLoss on sale of long-term investments
(Click to select)Increase in income taxes payableGain on sale of landDecrease in accounts payableDecrease in prepaid expensesDecrease in accounts receivableDecrease in accrued liabilitiesIncrease in accounts payableDepreciationIncrease in inventoryIncrease in accrued liabilitiesLoss on sale of long-term investments
(Click to select)Increase in accrued liabilitiesLoss on sale of long-term investmentsDepreciationDecrease in accrued liabilitiesGain on sale of landDecrease in prepaid expensesIncrease in accounts payableDecrease in accounts receivableIncrease in income taxes payableDecrease in accounts payableIncrease in inventory
(Click to select)Increase in income taxes payableDecrease in accounts receivableIncrease in accounts payableDecrease in accrued liabilitiesDecrease in prepaid expensesIncrease in accrued liabilitiesGain on sale of landLoss on sale of long-term investmentsDecrease in accounts payableIncrease in inventoryDepreciation
(Click to select)DepreciationDecrease in accounts receivableIncrease in accounts payableDecrease in accounts payableGain on sale of landIncrease in inventoryLoss on sale of long-term investmentsDecrease in prepaid expensesDecrease in accrued liabilitiesIncrease in accrued liabilitiesIncrease in income taxes payable
Net cash (Click to select)provided byused in operating activities		$

2.	Using the information in (1) above, prepare a statement of cash flows for the year. (Amounts to be deducted and negative amounts should be indicated with a minus sign.)

Herald Company Statement of Cash Flows (partial)
Operating activities:
Net cash (Click to select)used inprovided by operating activities		$
Investing activities:
(Click to select)Loss on sale of investmentsAdditions to long-term investmentsIncrease in accounts receivableIncrease in accounts payableProceeds from sale of landDecrease in accounts receivableIncrease in prepaid expensesGain on sale of landProceeds from sale of long-term investmentsAdditions to property, plant & equipmentDecrease in prepaid expenses	$
(Click to select)Additions to long-term investmentsAdditions to property, plant & equipmentIncrease in accounts receivableProceeds from sale of landIncrease in accounts payableIncrease in prepaid expensesDecrease in prepaid expensesLoss on sale of investmentsGain on sale of landProceeds from sale of long-term investmentsDecrease in accounts receivable
(Click to select)Additions to property, plant & equipmentIncrease in accounts payableDecrease in prepaid expensesAdditions to long-term investmentsGain on sale of landLoss on sale of investmentsIncrease in accounts receivableProceeds from sale of landProceeds from sale of long-term investmentsIncrease in prepaid expensesDecrease in accounts receivable
(Click to select)Decrease in accounts receivableGain on sale of landIncrease in accounts receivableAdditions to property, plant & equipmentLoss on sale of investmentsProceeds from sale of landAdditions to long-term investmentsProceeds from sale of long-term investmentsDecrease in prepaid expensesIncrease in accounts payableIncrease in prepaid expenses
Net cash (Click to select)provided byused in investing activities
Financing activities:
(Click to select)Cash dividendsProceeds from sale of long-term investmentsGain on sale of landAdditions to long-term investmentsIssuance of common stockDecrease in accounts receivableRetirement of bonds payableIssuance of bonds payableAdditions to property, plant & equipmentIncrease in accounts receivableDepreciation
(Click to select)Proceeds from sale of long-term investmentsRetirement of bonds payableAdditions to long-term investmentsGain on sale of landDecrease in accounts receivableIncrease in accounts receivableDepreciationCash dividendsIssuance of bonds payableAdditions to property, plant & equipmentIssuance of common stock
(Click to select)Issuance of common stockCash dividendsIssuance of bonds payableGain on sale of landAdditions to property, plant & equipmentIncrease in accounts receivableDecrease in accounts receivableDepreciationRetirement of bonds payableAdditions to long-term investmentsProceeds from sale of long-term investments
Net cash (Click to select)provided byused in financing activities
(Click to select)Net decrease in cashNet increase in cash
Cash balance, beginning
Cash balance, ending		$