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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

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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 $ 21 D $25 1 $ 6D $20 1 $ 22 D 5 41e ! $851 Liabilities and Stockholders' Equity Accounts Accounts payable $ 651 Accrued liabilities $ 25 D Income taxes payable $ 301 Bonds payable $ 212 1 Common stock $ 100 D Retained earnings $ 851 D = Decrease: 1 = Increase Long-term investments that cost the company $22 were sold during the year for $48 and land that cost $47 was sold for $25. In addition, the company declared and paid $19 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: $1.050 460 590 40 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items! Lost on sale of land Gain on sale of investments Income before taxes Income taxes Net Income 25 100 be The company's beginning cash balance was $130 and its ending balance was $109. 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 Complete this question by entering your answers in the tabs below. Below are several transactions that took place in Seneca Company last year. a. Paid suppliers for inventory purchases. b. Bought equipment for cash. c. Paid cash to repurchase its own stock. d. Collected cash from customers e. Paid wages to employees. f. Equipment was sold for cash. g. Common stock was sold for cash to investors h. Cash dividends were declared and paid. LA long-term loan was made to a supplier. J. Income taxes were paid to the government k. Interest was paid to a lender. 1. Bonds were retired by paying the principal amount due Required: Indicate how each of the above transaction would be classified on a statement of cash flows. As appropriate place an X in the Operating. Investing, or Financing column. Also, place an X in the Cash Intiow or Cash Outfiow column Transaction Operating Activity Investing Activity Financing Activity Cash Inflow Cash Outflow b. 0: f Paid suppliers for inventory purchases Bought equipment for cash Paid cash to repurchase its own stock Collected cash from customers Paid wages to employees Equipment was sold for cash Common stock was sold for cash to investors Cash dividends were declared and paid A long-term loan was made to supplier Income taxes were paid to the government Interest was paid to a lence Bonds were retired by paying the pnncipal amount due th

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