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

EXERCISE 15-4 Prepare a Statement of Cash Flows LO15-1, LO15-2 The following changes took place last year in Pavolik Company's balance sheet accounts: Long-term investments that cost the company $6 were sold during the year for \$16 and land that 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. Statement of Cash Flows The company's income statement for the year follows: The company's beginning cash balance was $90 and its ending balance was $85