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Exercise $13-7($Algo$)$ Prepare a Statement of Cash Flows $[$LO$13-1,$ LO$13-2,$ LO$13-3,$ LO$13-4,$ LO$13-5]$

The following changes took place last year in Pavolik Company's balance sheet accounts:

Long$-$term investments costing $$26$ were sold for $$56$ and land costing $$55$ was sold for $$29.$ In addition, the company paid $$23$ in cash dividends. 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 or issue common stock.

The company's income statement for the year follows:

Sales

$[$$$1,170],[$$$16]$

Cost of goods

Gross merginChacl

Long$-$term investments costing $$26$ were sold for $$56$ and land costing $$55$ was sold for $$29.$ In addition, the company paid $$23$ in cash dividends. 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 or issue common stock.

The company's income statement for the year follows:

$\backslash$table$[[$Sales$,,$$ $1,17$e$],[$Cost of goods sold,,$516],[$Gross margin,,$654],[$Selling and administrative expenses,,$470],[$Net operating incone,,$184],[$Nonoperating items:$],[$Loss on sale of land,$$(26),],[$Gain on sale of investments,$30,4],[$Income before taxes,,$18868],[$Income taxes,,$68],[$Net Income,,$$120$