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

Asset and Contra$-$asset AccountsLiabilities and Stockholders' Equity AccountsCash and cash equivalents$ $28$DAccounts payable$ $86$IAccounts receivable$ $32$IAccrued liabilities$ $32$DInventory$ $74$DIncome taxes payable$ $37$IPrepaid expenses$ $27$IBonds payable$ $268$ILong$-$term investments$ $29$DCommon stock$ $128$DProperty, plant, and equipment$ $515$IRetained earnings$ $106$IAccumulated depreciation$ $106$I$$

D $=$ Decrease; I $=$ Increase.

Long$-$term investments costing $$29$ were sold for $$62$ and land costing $$61$ was sold for $$32.$ In addition, the company paid $$26$ 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$$$ $1,260$Cost of goods sold$558$Gross margin$702$Selling and administrative expenses$500$Net operating income$202$Nonoperating items:$$Loss on sale of land$ $(29)$Gain on sale of investments$334$Income before taxes$206$Income taxes$74$Net income$$$ $132$

The company$$s beginning cash balance was $$144$ and its ending balance was $$116.$

Required:

Use the indirect method to determine the net cash provided by operating activities.

Prepare a statement of cash flows. The following changes took place last year in Pavolik Company's balance sheet accounts:

D $=$ Decrease; I $=$ Increase.

Long$-$term investments costing $\backslash (\backslash$$ $29\backslash )$ were sold for $\backslash (\backslash$$ $62\backslash )$ and land costing $\backslash (\backslash$$ $61\backslash )$ was sold for $\backslash (\backslash$$ $32\backslash ).$ In addition, the company paid $\backslash (\backslash$$ $26\backslash )$ 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:

The company's beginning cash balance was $\backslash (\backslash$$ $144\backslash )$ and its ending balance was $\backslash (\backslash$$ $116\backslash ).1.$ Use the indirect method to determine the net cash provided by operating activities.

$2.$ Prepare a statement of cash flows.

Complete this question by entering your answers in the tabs below.

Use the indirect method to determine the net cash provided by operating activities.

Note: Adjustment amounts that are to be deducted should be indicated with a minus sign.

$\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|\}$

$\backslash$hline $\backslash$multicolumn$\{2\}\{|$c$|\}\{$ Pavolik Company $\}$ & $\backslash \backslash$

$\backslash$hline Statement of Cash Flows $($partial$)$ & & $\backslash \backslash$

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$\backslash$end$\{$tabular$\}$ Required $1$

Required $2$

Prepare a statement of cash flows.

Note: List any deduction in cash and cash outflows as negative amounts.

$\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|\}$

$\backslash$hline $\backslash$multicolumn$\{2\}\{|$c$|\}\{$ Pavolik Company $\}\backslash \backslash$

$\backslash$hline Statement of Cash Flows & $\backslash \backslash$

$\backslash$hline Operating activities: & & $\backslash \backslash$

$\backslash$hline Investing activities: & & $\backslash \backslash$

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$\backslash$hline Financing activities: & & $\backslash \backslash$

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$\backslash$hline Beginning cash and cash equivalents & & $\backslash \backslash$

$\backslash$hline Ending cash and cash equivalents & & $\backslash \backslash$

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$\backslash$end$\{$tabular$\}$