The following changes took place last year in Pavolik Company's balance sheet accounts: Asset and Contra-Asset Accounts Cash Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: $ 23 D $ 27 I $ 64 D $ 22 I S 24 D $ 440 I $ 91 I Accounts receivable Inventory Prepaid expenses Long-term investments Property, plant, and equipment Accumulated depreciation D = Decrease; I = Increase. Long-term investments that cost the company $24 were sold during the year for $52 and land that cost $51 was sold for $27. In addition, the company declared and paid $21 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 Gain on sale of investments Income before taxes Income taxes Net income Liabilities and Stockholders' Equity Accounts Accounts payable Accrued liabilities $ (24) 28 Income taxes payable Bonds payable Common stock Retained earnings $ 1,110 488 622 450 172 176 64 $ 112 $ 71 I $ 27 D $ 32 I $ 228 I $ 108 D $91 I The company's beginning cash balance was $134 and its ending balance was $111. 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.
The following changes took place last year in Pavolik Company's balance sheet accounts: Asset and Contra-Asset Accounts Cash Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: $ 23 D $ 27 I $ 64 D $ 22 I S 24 D $ 440 I $ 91 I Accounts receivable Inventory Prepaid expenses Long-term investments Property, plant, and equipment Accumulated depreciation D = Decrease; I = Increase. Long-term investments that cost the company $24 were sold during the year for $52 and land that cost $51 was sold for $27. In addition, the company declared and paid $21 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 Gain on sale of investments Income before taxes Income taxes Net income Liabilities and Stockholders' Equity Accounts Accounts payable Accrued liabilities $ (24) 28 Income taxes payable Bonds payable Common stock Retained earnings $ 1,110 488 622 450 172 176 64 $ 112 $ 71 I $ 27 D $ 32 I $ 228 I $ 108 D $91 I The company's beginning cash balance was $134 and its ending balance was $111. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Nn.21.
Subject :- Account
Transcribed Image Text:)
The following changes took place last year in Pavolik Company's balance sheet accounts:
Asset and Contra-Asset Accounts
Cash
Sales
Cost of goods sold
Gross margin
Selling and administrative expenses
Net operating income.
Nonoperating items:
Accounts receivable
Inventory
Prepaid expenses
Long-term investments
Property, plant, and equipment
Accumulated depreciation
D = Decrease; I= Increase.
Long-term investments that cost the company $24 were sold during the year for $52 and land that cost $51 was sold for $27. In
addition, the company declared and paid $21 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.
Gain on sale of investments
Income before taxes
Income taxes
Net income
$ 23 D
$ 27 I
$ 64 D
$ 22 I
$24 D
$ 440 I
$ 91 I
Liabilities and Stockholders' Equity Accounts
Accounts payable
Accrued liabilities
$ (24)
28
Required 1 Required 2
Income taxes payable
Bonds payable
Common stock
Retained earnings
2**
$ 1,110
488
622
450
172
4
176
64
$ 112
The company's beginning cash balance was $134 and its ending balance was $111.
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.
$ 71 I
$ 27 D
$ 32 I
$ 228 I
$ 108 D
$ 91 I
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.)
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