The following changes took place last 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. 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:

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 theyear.

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Asset and Contra-Asset Accounts Liabilities and Equity Accounts Cash . . ..$5 D Accounts payable..$35 I Prepaid expenses..$9 Bonds payable $150 I Long-term investments$6 D Common stock.. .. Property, plant, and equipment.$185 Retained earnings.$54I Accumulated depreciation.... $80 D 60 I D Decrease: 1-Increase $700 400 9 Gross margin. Selling and administrative expenses Net operating income . . .. Nonoperating items 184 116 . $(6) 10 Loss on sale of land.. Gain on sale of investments Income before taxes Income taxes Net income 120 $ 84