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The following changes took place last year in Pavolik Company's balance sheet accounts: Asset and Contra-Asset Accounts Cash Sales Cost of goods sold Gross
The following changes took place last year in Pavolik Company's balance sheet accounts: Asset and Contra-Asset Accounts Cash Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Loss on sale of land S 36 D $ 40 I $ 90 D $35 I $ 37 D $ 635 I $ 130 I Accounts receivable Inventory Prepaid expenses Long-term investments Property, plant, and equipment Accumulated depreciation D = Decrease; I = Increase. Long-term investments that cost the company $37 were sold during the year for $78 and land that cost $77 was sold for $40. In addition, the company declared and paid $34 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: Gain on sale of investments Income before taxes Income taxes Net income Liabilities and Stockholders' Equity Accounts Accounts payable $ 110 I Accrued liabilities $ 40 D $ 45 I $ 332 I $ 160 D $ 130 I $ (37) 41 Income taxes payable Bonds payable Common stock Retained earnings 29/ $ 1,500 670 830 580 250 4 254 90 $164 The company's beginning cash balance was $160 and its ending balance was $124. 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 Income before taxes Income taxes Net income $ (37) 41 $ 1,500 670 830 580 250 4 254 90 $ 164 The company's beginning cash balance was $160 and its ending balance was $124. 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) < Required 1 $ 0 0 Required 2 > Prepare a statement of cash flows for the year. (List any deduction in cash and cash outflows as negative amounts.) Pavolik Company Statement of Cash Flows Operating activities: Investing activities: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents 69 0 0 0 0
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Cash Flow Statement It states the inflow as well as outflow of the company that is made by the compa...Get Instant Access to Expert-Tailored Solutions
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