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 Liabilities and Stockholders' Equity Accounts $ 31 0 Accounts payable $ 951 $35 2 Accrued liabilities $ 350 $ 80 D Income taxes payable $ 401 $ 30 1 Bonds payable $292 $ 320 Common stock $1400 $560 I Retained earnings $115 I $115 I D Decrease; I = Increase. Long-term investments that cost the company $32 were sold during the year for $68 and land that cost $67 was sold for $35. In addition, the company declared and paid $29 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: 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 $1,350 600 750 530 220 $ (32) 36 4 224 80 $144 Income before taxes Income taxes Net income The company's beginning cash balance was $150 and its ending balance was $119. 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. Net income Pavolik Company Statement of Cash Flows (partial) Adjustments to convert net income to a cash basis: Depreciation Loss on sale of land Gain on sale of land Increase in accounts receivable Decrease in inventory Increase in prepaid expenses Increase in accounts payable Decrease in accrued liabilities Increase in income taxes payable Net cash provided by operating activities $ Pavolik Company Statement of Cash Flows Operating activities: Net cash provided by operating activities Investing activities: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents 0 0 $ 0 0