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The following changes took place last year in Pavolik Company's balance sheet accounts: Asset and Contra-Asset Accounts Liabilities and Stockholders' Equity Accounts Cash $ 9

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The following changes took place last year in Pavolik Company's balance sheet accounts: Asset and Contra-Asset Accounts Liabilities and Stockholders' Equity Accounts Cash $ 9 D Accounts payable $ 29 I Accounts receivable $ 13 I Accrued liabilities $ 13 D Inventory $36 D Income taxes payable $ 18 1 Prepaid expenses S 81 Bonds payable $ 116 1 Long-term investments $ 100 Common stock $ 520 Property, plant, and equipment $ 230 1 Retained earnings $ 49 1 Accumulated depreciation $ 49 1 D=Decrease: 1 = Increase. Long-term investments that cost the company $10 were sold during the year for $24 and land that cost $23 was sold for $13. In addition, the company declared and paid $7 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: 5 698 292 398 310 88 Sales Cost of goods sold Gross margin Selling and administrative expenses Wet operating income Nonoperating itens: Loss on sale of land Gain on sale of investments Incone before taxes Income taxes Net Income $(10) 14 4 92 36 $ 58 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) NYUCU OYUNCUL 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: 0 Financing activities 0 0 Beginning cash and cash equivalents Ending cash and cash equivalents S 0

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