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

D = Decrease; I = Increase.

Long-term investments costing $16 were sold for $36 and land costing $35 was sold for $19. In addition, the company paid $13 in cash dividends. 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 or issue common stock.

The companys income statement for the year follows:

The companys beginning cash balance was $118 and its ending balance was $103.

Required:

1. Use the indirect method to determine the net cash provided by operating activities.
2. Prepare a statement of cash flows.

\begin{tabular}{llll} Asset and Contra-asset Accounts & & Liabilities and Stockholders' Equity Accounts \\ Cash and cash equivalents & $15D & Accounts payable & $47I \\ Accounts receivable & $19I & Accrued liabilities & $19D \\ Inventory & $48D & Income taxes payable & $24I \\ Prepaid expenses & $14I & Bonds payable & $164I \\ Long-term investments & $16D & Common stock & $76D \\ Property, plant, and equipment & $320I & Retained earnings & $67I \\ Accumulated depreciation & $67I & & \end{tabular} \begin{tabular}{|c|c|c|} \hline Sales & & $870 \\ \hline Cost of goods sold & & 376 \\ \hline Gross margin & & 494 \\ \hline Selling and administrative expenses & & 370 \\ \hline Net operating income & & 124 \\ \hline \multicolumn{3}{|l|}{ Nonoperating items: } \\ \hline Loss on sale of land & $(16) & \\ \hline Gain on sale of investments & 20 & 4 \\ \hline Income before taxes & & 128 \\ \hline Income taxes & & 48 \\ \hline Net income & & $80 \\ \hline \end{tabular} Use the indirect method to determine the net cash provided by operating activities. Note: Adjustment amounts that are to be deducted should be indicated with a minus sid Prepare a statement of cash flows