Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following changes took place last year in Pavolik Company's balance sheet accounts: Asset and contra-set Accounts Cash Accounts receivable Inventory Prepaid expenses Long-term investments

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The following changes took place last year in Pavolik Company's balance sheet accounts: Asset and contra-set Accounts Cash Accounts receivable Inventory Prepaid expenses Long-term investments Property, plant, and equipment Accumulated depreciation $ 21 D $ 251 $ 60D $ 20 1 $ 220 34101 5851 Liabilities and Stockholders' Equity Accounta Accounts payable $65 1 Accrued liabilities $ 25 D Income taxes payable 5 301 Bonds payable $2121 Common stock $100 D Retained earnings $ 852 D Decrease; I = 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: 51.050 460 590 430 160 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating Items Loss on sale of land Gain on sale of investments Income before taxes Income taxes Net income $(22) 26 164 60 $ 104 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. 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) 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) 0 $ 0 MI YULU 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 as 0 Financing activities: 0 0 Beginning cash and cash equivalents Ending cash and cash equivalents $ 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Non Accounting Students

Authors: John Dyson, Ellie Franklin

10th Edition

1292286938, 9781292286938

More Books

Students also viewed these Accounting questions

Question

b. Where is it located (hospital, research institute, university)?

Answered: 1 week ago

Question

What is involved in the administration of a labor agreement?

Answered: 1 week ago

Question

What are topics included in virtually all labor agreements?

Answered: 1 week ago