The following changes took place last year in Herald Company€™s balance sheet accounts:

Long-term investments that had cost the company $50 were sold during the year for $45, and land that had cost $30 was sold for $70. In addition, the company declared and paid $35 in cash dividends during the year. No sales or retirements of plant and equipment took place during the year.
The company€™s income statement for the year follows:

The company€™s beginning cash balance was $100, and its ending balance was $120.
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 theyear.

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Debit Balance Accounts Credit Balance Accounts Cash Accounts Receivable $201 $40 $20 1 $10 D S30I Accounts Payable Accrued Liabilities Prepaid Expenses Long-Term Investments Plant and Equipment S5D Taxes Payable 30 DBonds Payable $101 $20 D Deferred Income Taxes Common Stock Retained Earnings $1501 $401 $401 $30 D D DecreaseI Increase. Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income. Nonoperating items: $600 250 350 280 70 Loss on sale of investments$ (5) Gain on sale of land Income before taxes . Income taxess. Net income 40 35 105 30 $75