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

Asset and Contra-Asset Accounts			Liabilities and Stockholders' Equity Accounts
Cash	$ 22	D	Accounts payable	$ 68	I
Accounts receivable	$ 26	I	Accrued liabilities	$ 26	D
Inventory	$ 62	D	Income taxes payable	$ 31	I
Prepaid expenses	$ 21	I	Bonds payable	$ 220	I
Long-term investments	$ 23	D	Common stock	$ 104	D
Property, plant, and equipment	$ 425	I	Retained earnings	$ 88	I
Accumulated depreciation	$ 88	I

D = Decrease; I = Increase.

Long-term investments that cost the company $23 were sold during the year for $50 and land that cost $49 was sold for $26. In addition, the company declared and paid $20 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		$ 1,080
Cost of goods sold		474
Gross margin		606
Selling and administrative expenses		440
Net operating income		166
Nonoperating items:
Loss on sale of land	$ (23)
Gain on sale of investments	27	4
Income before taxes		170
Income taxes		62
Net income		$ 108

The companys beginning cash balance was $132 and its ending balance was $110.

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