The following changes took place last year in Pavolik Companys balance sheet accounts Asset and Contra Asset Accounts Liabilities and Stockholders' Equity Accounts Cash $ 32 D Accounts payable $ 98 I Accounts receivable $ 36 I Accrued liabilities $ 36 D Inventory $ 82 D Income taxes payable $ 41 I Prepaid expenses $ 31 I Bonds payable $ 300 I Long term investments $ 33 D Common stock $ 144 D Property, plant, and equipment $ 575 I Retained earnings $ 118 I Accumulated depreciation $ 118 I D Decrease I Increase Long term investments that cost the company $33 were sold during the year for $70 and land that cost $69 was sold for $36 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 Pavolik did not retire any bonds during the year or issue any new common stock The companys income statement for the year follows Sales $ 1,380 Cost of goods sold 614 Gross margin 766 Selling and administrative expenses 540 Net operating income 226 Nonoperating items Loss on sale of land $ (33 ) Gain on sale of investments 37 4 Income before taxes 230 Income taxes 82 Net income $ 148 The companys beginning cash balance was $152 and its ending balance was $120 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) Required 1 Required 2 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 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

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Posted on Jul 29, 2024

The following changes took place last year in Pavolik Companys balance sheet accounts: Asset and Contra-Asset Accounts Liabilities and Stockholders' Equity Accounts Cash $ 32

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

Asset and Contra-Asset Accounts				Liabilities and Stockholders' Equity Accounts
Cash	$	32	D	Accounts payable	$	98	I
Accounts receivable	$	36	I	Accrued liabilities	$	36	D
Inventory	$	82	D	Income taxes payable	$	41	I
Prepaid expenses	$	31	I	Bonds payable	$	300	I
Long-term investments	$	33	D	Common stock	$	144	D
Property, plant, and equipment	$	575	I	Retained earnings	$	118	I
Accumulated depreciation	$	118	I

D = Decrease; I = Increase.

Long-term investments that cost the company $33 were sold during the year for $70 and land that cost $69 was sold for $36. 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. Pavolik did not retire any bonds during the year or issue any new common stock.

The companys income statement for the year follows:


Sales				$	1,380
Cost of goods sold					614
Gross margin					766
Selling and administrative expenses					540
Net operating income					226
Nonoperating items:
Loss on sale of land	$	(33	)
Gain on sale of investments		37			4
Income before taxes					230
Income taxes					82
Net income				$	148

The companys beginning cash balance was $152 and its ending balance was $120.

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.

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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) Required 1 Required 2 > 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 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