The following changes took place last year in Pavolik Company's balance sheet accounts Asset and Contra-Asset Accounts Cash and cash ecuivalents Accounts receivable Inventory Prepaid expenses Long-term investments Property, plant, and equipment Accumulated depreciation Liabilities and Stockholders' Equity Accounts 74 I 28 D $ 33 I $236 I $112 D 94 I $24 D Accounts payable $ 28I Accrued liabilities $ 66 D Income taxes payable $ 23 I Bonds payable S 25 D Common stock $455 I Retained earnings 94 I D Decrease; Increase Long-term investments that cost the company $25 were sold during the year for $54 and land that cost $53 was sold for $28. In addition, the company declared and paid $22 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 $1,140 502 638 460 178 Sales Cost of goods sold Gross marqin Selling and administrative expenses Net operating income Nonoperating items: Loss on sale of land $(25) Gain on sale of investments Income before taxes Income taxes Net income 294 182 $ 116 The company's beginning cash balance was $136 and its ending balance was $112 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 Pavolik Compan Statement of Cash Flows (partial) 116 et income Adjustments to convert contribution margin to a cash basis 112 Depreciation Loss on sale of land Increase in accounts receivable Decrease in inventory Increase in prepaid expenses Decrease in accrued liabilities Gain on sale of long-term investments Increase in income taxes payable Increase in accounts payable (28) (23) (28) (29) 74 et cash provided by operating activities 293 Pavolik Company Statement of Cash Flows Operating activities: 293 Investing activities: Financing activities: 293 Beginning cash and cash equivalents Ending cash and cash equivalents 293