The following changes took place last year in Pavolik Company's balance sheet accounts: Asset and Contra-Asset Accounts Cash Accounts receivable Inventory Prepaid expenses Long-term investments Property, plant, and equipment Accumulated depreciation $ 30 D $ 341 $ 78 D $ 29 1 $ 31 D $545 1 $1121 Liabilities and stockholders' Equity Accounts Accounts payable $ 921 Acerued liabilities $ 34 D Income taxes payable $ 391 Bonds payable $2841 Common stock $136 D Retained earnings $112 1 D = Decrease; I = Increase. Long-term investments that cost the company $31 were sold during the year for $66 and land that cost $65 was sold for $34. In addition, the company declared and paid $28 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: $1,320 586 734 520 214 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 $(31) 35 218 $ 140 The company's beginning cash balance was $148 and its ending balance was $118. Required: 1. Use the indirect method to determine the net cash provided by operating activities for the year. 2. Prepare a statement of cash flows for the year. Use the indirect method to determine the net cash provided by operating activities for the year. (Adjustment amounts that are to be deducted should be indicated with a minus sign.) Pavolik Company Statement of Cash Flows (partial) Net income $ 140 Adjustments to convert net income to a cash basis: Depreciation $ 1121 Increase in accounts receivable Decrease in inventory Increase in prepaid expenses Increase in accounts payable Decrease in accrued liabilities Increase in income taxes payable Gain on sale of long-term investments Loss on sale of land 112 Net cash provided by operating activities $ 252