The following changes took place during the year in Pavolik Company’s balance sheet accounts:

Long-term investments that had cost the company $6 were sold during the year for $ 16, and land that had cost $15 was sold for $9. In addition, the company declared and paid $30 in cash dividends during the year. No sales or retirements of plant and equipment took place during the year. The company’s income statement for the year follows:

The company’s beginning cash balance was $90, and its ending balance was $85.

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.

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Cash $5 D Accounts payable $35 I $110 I Accrued liabilities $4 D Accounts receivable $70 D Bonds payable $150 I Inventory I 8$ $80 D $9I| Deferred income taxes Prepaid expenses $6 D Common stock Long-term investments Plant and equipment $200 I Retained earnings $54 I Accumulated depreciation $(60) I Land $15D D=Decrease; I=Increase.