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The following changes took place last year in Pavolik Companys balance sheet accounts: Asset and Contra-Asset Accounts Liabilities and Equity Accounts Cash $ 28 D

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

Asset and Contra-Asset Accounts Liabilities and Equity Accounts
Cash $ 28 D Accounts payable $ 86 I
Accounts receivable $ 32 I Accrued liabilities $ 32 D
Inventory $ 74 D Income taxes payable $ 37 I
Prepaid expenses $ 27 I Bonds payable $ 268 I
Long-term investments $ 29 D Common stock $ 128 D
Property, plant, and equipment $ 515 I Retained earnings $ 106 I
Accumulated depreciation $ 106 I

D = Decrease; I = Increase.

Long-term investments that had cost the company $29 were sold during the year for $62, and land that had cost $61 was sold for $32. In addition, the company declared and paid $26 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 $ 1,260
Cost of goods sold 558
Gross margin 702
Selling and administrative expenses 500
Net operating income 202
Nonoperating items:
Loss on sale of land $ (29)
Gain on sale of investment 33 4
Income before taxes 206
Income taxes 74
Net income $

132

The companys beginning cash balance was $144 and its ending balance was $116.

Required:
1.

Using the indirect method, determine the net cash provided by / used in operating activities for the year. (List any deduction in cash and cash outflows as negative amounts.)

Pavolki Company

Statement Of Cash Flows (partial)

1.

2. Adjustments to convert net income to cash basis

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

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

1. Operating activities

2.

3. Investing activities

4.

5.

6.

7.

8.

9. Finacing activities

10.

11.

12.

13.

14.

15.

16. Beginning Cash and Cash Equivilents

17. Ending Cash and Cash Equivilets

.

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