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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 and cash

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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 and cash equivalents $ 8D Accounts payable $ 261 Accounts receivable $ 12 I Accrued liabilities S 12D Inventory $ 34 D Income taxes payable $ 171 Prepaid expenses $ 71 Bonds payable 5108 I Long-term investments $90 Common stock $ 48 D Property, plant, and equipment $215 I Retained earnings $ 461 Accumulated depreciation $ 46 I D Decrease; 1 = Increase Long-term investments that cost the company $9 were sold during the year for $22 and land that cost $21 was sold for $12. In addition, the company declared and paid $6 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: 5660 278 382 3ea 82 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 $(9) 13 4 86 34 $ 52 The company's beginning cash balance was $104 and its ending balance was $96. 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) Required 2 > Required 1 Required 2 Prepare a statement of cash flows for the year. (ust any deduction in cash and cash outflows as negative amounts. Pavolik Company Statement of Cash Flows Operating activities: Investing activities: Financing activities: Beginning cash and cash equivalents Ending cash and cash equivalents Required 1

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