Question: the following changes took place last year in pavolik companys...
The following changes took place last year in Pavolik Company’s balance sheet accounts:
|Asset and Contra-Asset Accounts||Liabilities and Stockholders' Equity Accounts|
|Accounts receivable||$||11||I||Accrued liabilities||$||11||D|
|Inventory||$||32||D||Income taxes payable||$||16||I|
|Prepaid expenses||$||6||I||Bonds payable||$||100||I|
|Long-term investments||$||8||D||Common stock||$||44||D|
|Property, plant, and equipment||$||200||I||Retained earnings||$||43||I|
D = Decrease; I = Increase.
Long-term investments that cost the company $8 were sold during the year for $20 and land that cost $19 was sold for $11. In addition, the company declared and paid $5 in cash dividends during the year. Besides the sale of land, no other sales or retirements of plant and equipment took place during the year. Pavolik did not retire any bonds during the year or issue any new common stock.
The company’s income statement for the year follows:
|Cost of goods sold||264|
|Selling and administrative expenses||290|
|Net operating income||76|
|Loss on sale of land||$||(8||)|
|Gain on sale of investments||12||4|
|Income before taxes||80|
The company’s beginning cash balance was $102 and its ending balance was $95.
Prepare a statement of cash flows for the year.