The following changes took place last year in Pavolik Company's balance sheet accounts: Asset and Contea-Asset Accounts Cash Accounts receivable Inventory Prepaid expenses Long-term investments Property, plant, and equipment Accumulated depreciation $ 5D $110 1 $ 70D $ 91 $ 6 D $185 1 $ 601 Liabilities and Stockholders' Equity Accounts Accounts payable $ 35 I Accrued liabilities $ 4D Income taxes payable $ B1 Bonda payable $150 1 Common stock $ BOD Retained earnings $ 541 D = Decrease; Increase. Long-term investments that cost the company $6 were sold during the year for $16 and land that cost $15 was sold for $9. In addition, the company declared and paid $30 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. Pavollk did not retire any bonds during the year or issue any new common stock. The company's income statement for the year follows: $700 400 300 184 116 Sales Cost of goods pold Gross margin Selling and administrative expenses Net operating income Nonoperating items Los on sale of land Gain on sale of investments Income before taxes Income taxes Not income $ (6) 10 4 120 36 $ 84 The company's beginning cash balance was $90 and its ending balance was $85. 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. Required 1 Required 2 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) Net income Adjustments to convert net income to a cash basis: Depreciation Increase in accounts receivable Decrease in inventory Increase in prepaid expenses Increase in accounts payable Decrease in accrued liabilities Increase in income taxes payable Gain on sale of long-term investments Loss on sale of land 0 S 0 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. Required 1 Required 2 Prepare a statement of cash flows for the year. (List any deduction in cash and cash outflown as negative amounts.) Pavolik Company Statement of Cash Flows Operating activities: Net cash provided by investing activities Investing activities: Proceeds from sale of long-term investments Proceeds from sale of land Purchase of common stock 0 Net cash provided by financing activities Financing activities: Issuance of bonds payable Purchase of common stock Cash dividends paid 0 0 Net cash provided by financing activities Net decrease in cash and cash equivalents Beginning cash and cash equivalents Ending cash and cash equivalents $ 0