Required 1 Required 2 Exercise 15-4 (Algo) Prepare a statement of Cash Flows [LO15-1, LO15-2] Use the indirect method to determine the net cash provided by operating activities for the year. (Adjustment amounts that are to be deducted should be indicated with a minus sign.) The following changes took place last year in Pavolik Company's balance sheet accounts: Pavolik Company Statement of Cash Flows (partial) AARAL and Contra-HARREAccount Cash Aceants receivable Inventory Drepaid expenses Long-tern investments Property, plant, and equipment Accumulated depreciation $ 110 $ 15 T $ 400 $ 101 81 $ 12D $260 1 $ 551 Liabilities and Stockholders' Reusty Accounts Accounts payable $35 T Accrued liabilities Incone taxes payabia $ 20 1 Bonds payable $ 132 1 Connon stock $ 60 D Retained earnings $ SSI D = Decrease; i = Increase Long-term Investments that cost the company $12 were sold during the year for $28 and land that cost $27 was sold for $15. In addition, the company declared and paid $9 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: Recuired 1 Required 2 $750 320 430 330 100 Prepare a statement of cash flows for the year. (List any deduction in cash and cash outtiaws as negative amounts.) Sales Cost of goods sold Cross margin Selling and adninistrative expenses Ket operating income Kongezating items Loss on sale of land Gain on sale of investments Income before taxes Incote taxe Net incone * $(12) 16 Pavollk Company Statement of Cash Flows 104 Operating activities: Investing activities The company's beginning cash balance was $110 and its ending balance was $99. 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. Francing activities: Beginning cash and casteguivalents Ending cash and cash equivalents