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

2. Prepare a statement of cash flows.

The companys beginning cash balance was $116 and its ending balance was $102.

The following changes took place last year in Pavolik Company's balance sheet accounts: = Decrease; I= Increase Long-term investments costing $15 were sold for $34 and land costing $33 was sold for $18. In addition, the company paid $12 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: \begin{tabular}{|l|r|r|} \hline \multicolumn{3}{|c|}{ Pavolik Company } \\ \hline Statement of Cash Flows (partial) \\ \hline Net income & & $ \\ \hline Adjustments to convert net income to a cash basis: & 64 & \\ \hline Depreciation & (18) & \\ \hline Increase in accounts receivable & 46 & \\ \hline Decrease in inventory & (13) & \\ \hline Increase in prepaid expenses & 44 & \\ \hline Increase in accounts payable & (18) & \\ \hline Decrease in accrued liabilities & 23 & \\ \hline Increase in income taxes payable & 15 & \\ \hline Loss on sale of land & (19) & \\ \hline Gain on sale of long-term investments & & \\ \hline & & $ \\ \hline Net cash provided by operating activities & 200 \\ \hline \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ Savolik Company } & \\ \hline Operating activities: & & \\ \hline Net cash provided by operating activities & & \\ \hline Investing activities: & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Financing activities: & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular}