The following changes took place last year in Pavolik Company's balance sheet accounts: Asset and Contra-Asset...
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The following changes took place last year in Pavolik Company's balance sheet accounts: Asset and Contra-Asset Accounts Cash Accounts receivable Inventory Prepaid expenses Long-term investments Property, plant, and equipment $ 17 D Liabilities and Stockholders' Equity Accounts Accounts payable $ 53 I $ 21 I Accrued liabilities $ 21 D $ 52 D Income taxes payable $ 26 I $ 16 I Bonds payable $ 180 I $ 18 D Common stock $ 350 I $ 73 I Retained earnings $ 84 D $ 73 I Accumulated depreciation D = Decrease; I = Increase. Long-term investments that cost the company $18 were sold during the year for $40 and land that cost $39 was sold for $21. In addition, the company declared and paid $15 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: Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Loss on sale of land $ 930 404 526 390 136 $ (18) 22 4 140 52 $ 88 Gain on sale of investments Income before taxes Income taxes Net income The company's beginning cash balance was $122 and its ending balance was $105. 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. Complete this question by entering your answers in the tabs below. Required 1 Required 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.) Pavolik Company Statement of Cash Flows (partial) 0 $ 0 The following changes took place last year in Pavolik Company's balance sheet accounts: Asset and Contra-Asset Accounts Cash Accounts receivable Inventory Prepaid expenses Long-term investments Property, plant, and equipment $ 17 D Liabilities and Stockholders' Equity Accounts Accounts payable $ 53 I $ 21 I Accrued liabilities $ 21 D $ 52 D Income taxes payable $ 26 I $ 16 I Bonds payable $ 180 I $ 18 D Common stock $ 350 I $ 73 I Retained earnings $ 84 D $ 73 I Accumulated depreciation D = Decrease; I = Increase. Long-term investments that cost the company $18 were sold during the year for $40 and land that cost $39 was sold for $21. In addition, the company declared and paid $15 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: Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Loss on sale of land $ 930 404 526 390 136 $ (18) 22 4 140 52 $ 88 Gain on sale of investments Income before taxes Income taxes Net income The company's beginning cash balance was $122 and its ending balance was $105. 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. Complete this question by entering your answers in the tabs below. Required 1 Required 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.) Pavolik Company Statement of Cash Flows (partial) 0 $ 0
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Answer rating: 100% (QA)
Net Cash Provided by Operating Activities The indirect method starts with net income and adjusts it for noncash items and changes in current assets an... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0077522940
15th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
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