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

Asset and Contra-Asset Accounts				Liabilities and Stockholders' Equity Accounts
Cash	$	12	D	Accounts payable	$	38	I
Accounts receivable	$	16	I	Accrued liabilities	$	16	D
Inventory	$	42	D	Income taxes payable	$	21	I
Prepaid expenses	$	11	I	Bonds payable	$	140	I
Long-term investments	$	13	D	Common stock	$	64	D
Property, plant, and equipment	$	275	I	Retained earnings	$	58	I
Accumulated depreciation	$	58	I

D = Decrease; I = Increase.

Long-term investments that cost the company $13 were sold during the year for $30 and land that cost $29 was sold for $16. In addition, the company declared and paid $10 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 companys income statement for the year follows:

Sales					$	780
Cost of goods sold						334
Gross margin						446
Selling and administrative expenses						340
Net operating income						106
Nonoperating items:
Loss on sale of land	$	(13	)
Gain on sale of investments		17				4
Income before taxes						110
Income taxes						42
Net income					$	68

The companys beginning cash balance was $112 and its ending balance was $100.

Required:

Use the indirect method to determine the net cash provided by operating activities for the year and 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)

• 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