Question

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 $ 13 D $150 I $ 70 D $ 17 I $ 14 D $ 169 I $ 52 1 Liabilities and Stockholders' Equity Accounts Accounts payable $ 43 I Accrued liabilities $ 4D Income taxes payable $ 16 1 Bonds payable $ 134 I Common stock $ 56 D Retained earnings $ 54 I D = Decrease; 1 = Increase. Long-term investments that cost the company $14 were sold during the year for $24 and land that cost $23 was sold for $17. 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: $660 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Loss on sale of land Gain on sale of investments Income before taxes Income taxes Net income

Answer 1

Amount Answers Page No 0 Devets method to determining the neige cash flowers to come operating activities :- Particular Amount Sales $660 Adjoemoeka to a cash basis: -$150 : Accounts receivable $ 510 cost of goods sold Adjustments to a cash basis :- Accounts payable - $43 . change in inventory -$70 * 287 Selling and administiative expenses $ 184 Adictments to cash basis: $400 $17 Prepaid expenses Dephecia fian. xpense Accrued liabilities -$52 $24 Income taxes Adjustments to a couch bagis Income tax payable -16 $ 8 Not cash flow from operating activities. $ 68