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 Accumulated depreciation D-Decrease; I Increase. Sales Cost of goods sold Gross margin: Selling and administrative expenses Net operating income Nonoperating items: Long-term investments that cost the company $28 were sold during the year for $60 and land that cost $59 was sold for $31. In addition, the company declared and paid $25 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: ▷ Loss on sale of land $ 270 $ 311 $720 $ 26 1 $28 D $ 500 1 $ 103 1 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: the company's income statement for the year follows: Loss on sale of land. Gain on sale of investments Income before taxes Income taxes Net Income $ (28) Liabilities and Stockholders Equity Accounts Accounts payable Accrued liabilities Income taxes payable Bonds payable Common stock Retained earnings $ (28) 32 $1,250 544 686 490 196 $ 1,230 544 686 490 196 4 200 72 $ 128 $83 T $310 $36 1 $ 260 1 $ 124 D $ 103 1 The company's beginning cash balance was $142 and its ending balance was $115. 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. C
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 Accumulated depreciation D-Decrease; I Increase. Sales Cost of goods sold Gross margin: Selling and administrative expenses Net operating income Nonoperating items: Long-term investments that cost the company $28 were sold during the year for $60 and land that cost $59 was sold for $31. In addition, the company declared and paid $25 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: ▷ Loss on sale of land $ 270 $ 311 $720 $ 26 1 $28 D $ 500 1 $ 103 1 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: the company's income statement for the year follows: Loss on sale of land. Gain on sale of investments Income before taxes Income taxes Net Income $ (28) Liabilities and Stockholders Equity Accounts Accounts payable Accrued liabilities Income taxes payable Bonds payable Common stock Retained earnings $ (28) 32 $1,250 544 686 490 196 $ 1,230 544 686 490 196 4 200 72 $ 128 $83 T $310 $36 1 $ 260 1 $ 124 D $ 103 1 The company's beginning cash balance was $142 and its ending balance was $115. 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. C
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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)
Operating activities:
Investing activities:
Financing activities:
Pavolik Company
Statement of Cash Flows
Beginning cash and cash equivalents
Ending cash and cash equivalents
D
Transcribed Image Text: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
Accumulated depreciation
D=Decrease; I=Increase.
Sales
Cost of goods sold
Gross margin
Selling and administrative expenses
Net operating income
Nonoperating items:
Loss on sale of land
Long-term investments that cost the company $28 were sold during the year for $60 and land that cost $59 was sold for $31. In
addition, the company declared and paid $25 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:
4
Sales
Cost of goods sold
Gross margin
Selling and administrative expenses
Net operating income
the company's income statement for the year follows:
Nonoperating items:
$ 270
$ 311
$ 720
$26 1
Loss on sale of land i
Gain on sale of investments
Income before taxes i
Income taxes
Net income.
$ 280
$.500 I
$ 103 I
$ (28)
Required 1 Required 2
Liabilities and Stockholders' Equity Accounts
Accounts payable
Accrued liabilities
Income taxes payable
Bonds payable
Common stock
Retained earnings
$ (28)
32
$ 1,230
544
686
490
196
$ 1,230
544
686
490
196
1244/
200
72
$ 128
The company's beginning cash balance was $142 and its ending balance was $115.
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.
4
Complete this question by entering your answers in the tabs below.
$ 83 1
$ 31 D
$.36 I
$ 260 I
$ 124 D
$ 103 1
Chec
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