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; 1= Increase. 550 $ 110 1 $ 70 D Sales 591 $60 $185 I $.60 1 Liabilities and Stockholders Equity Accounts Accounts payable Accrued liabilities Income taxes payable Bonds payable Common stock Retained earnings $35 1 $40 581 $150 1 $80 D 5:54 1 Long-term investments that cost the company $6 were sold during the year for $16 and land that cost $15 was sold for $9. In addition, the company declared and paid $30 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:
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; 1= Increase. 550 $ 110 1 $ 70 D Sales 591 $60 $185 I $.60 1 Liabilities and Stockholders Equity Accounts Accounts payable Accrued liabilities Income taxes payable Bonds payable Common stock Retained earnings $35 1 $40 581 $150 1 $80 D 5:54 1 Long-term investments that cost the company $6 were sold during the year for $16 and land that cost $15 was sold for $9. In addition, the company declared and paid $30 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:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
Sales
Cost of goods sold
Gross margin
Selling and administrative expenses
$50
$ 110 I
$70 D
Net operating income
Nonoperating items:
Loss on sale of land
Gain on sale of investments
Income before taxes
Income taxes
Net Income
$91
$60
$ 185 I
$ 60 I
Liabilities and Stockholders Equity Accounts
Accounts payable
Accrued liabilities
Long-term investments
Property, plant, and equipment
Accumulated depreciation
D=Decrease; I= Increase.
Long-term investments that cost the company $6 were sold during the year for $16 and land that cost $15 was sold for $9. In addition,
the company declared and paid $30 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:
$ (6)
10
Income taxes payable
Bonds payable
Common stock
Retained earnings
$ 700
400
300
184
116
4
120
36
$84
$35 I
$40
$81
$150 1
$ 80 D
$54 T
The company's beginning cash balance was $90 and its ending balance was $85.
Transcribed Image Text:Requirea:
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.)
Show Transcribed Text
Required 1 Required 2
Operating activities:
Pavolik Company
Statement of Cash Flows (partial)
Investing activities:
Financing activities.
Saved
Prepare a statement of cash flows for the year. (List any deduction in cash and cash outflows as negative amounts.)
Pavolik Company
Statement of Cash Flows
Beginning cash and cash equivalents
Ending cash and cash equivalents
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