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

Asset and Contra-Asset Accounts				Liabilities and Equity Accounts
Cash	$	76	I	Accounts payable	$	20	I
Accounts receivable	$	15	I	Accrued liabilities	$	8	D
Inventory	$	27	D	Income taxes payable	$	12	I
Prepaid expenses	$	5	I	Bonds payable	$	19	I
Long-term investments	$	29	D	Common stock	$	44	D
Property, plant, and equipment	$	145	I	Retained earnings	$	77	I
Accumulated depreciation	$	43	I

D = Decrease; I = Increase

Long-term investments that had cost the company $29 were sold during the year for $45, and land that had cost $30 was sold for $75. In addition, the company declared and paid $32 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			$	602
Cost of goods sold				248
Gross margin				354
Selling and administrative expenses				277
Net operating income				77
Nonoperating items:
Gain on sale of land	$	45
Gain on sale of investment		16		61
Income before taxes				138
Income taxes				29
Net income			$	109

The companys beginning cash balance was $100 and its ending balance was $176.

Required:

Use the direct method to convert the company's income statement to a cash basis. (Adjustment amounts that are to be deducted should be indicated with a minus sign.)

PLEASE NOTE THIS IS THE DIRECT METHOD.