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The following changes took place last yearin Pavolik Company's balance sheet accounts: Asset and Contra Liabilities and Equity Accounts 25 D Accounts payable Accounts receivable
The following changes took place last yearin Pavolik Company's balance sheet accounts: Asset and Contra Liabilities and Equity Accounts 25 D Accounts payable Accounts receivable liabilities 29 D 88 D ncome taxes payable Inventory 34 244 l Prepaid expenses 24 I Bonds payable Long-term investments 26 D Common stock 116 D Property plant, and equipment 470 l Retained earnings Accumulated depreciation D Decrease: l* Increase. Long-term investments that had cost e company$20 were sold during the year for $50, and land that had cost $55 was sold for$20. In addition, the company declared and paid $23in cash dividends during the year. Besides the sale of land, no other sales or of took place during the year. Pavolik did not retire anybonds during the year or issue any new common stock. The company's income statement for the year follows: Sales $1,170 Cost of goods sold 516 Gross margin Selling and administrative expenses 470 Net operating income Nonoperating items: (26) Loss on sale ofland Gain on sale of Income before taxes 188 Income taxes 120 Net income The company's beginning cash balance was$138 and its ending balance was $113. Required 1. Using the indirect method,determine the net cash provided by/used in operating activitiesforthe year. (List any deduction in cash and cash outflows as negative amounts.)
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