Long-term investments that had cost the company $6 were sold during the year for $16, and land that had cost $15 was sold for $9. In addition, the company declared and paid $30 in cash dividends during the year. No sales or retirements of plant and equipment took place during the year.
The company's income statement for the year follows:
Sales $700
Less cost of goods sold 400
Gross margin 300
Less operating expenses 184
Net operating income 116
Nonoperating items:
Gain on sale of investments $10
Loss on sale of land 6 4
Income before taxes 120
Less income taxes 36
Net income $ 84
The company's beginning cash balance was $90, and its ending balance was $85.
Required:
1. I completed this question only 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.
3. Use the direct method to convert the company's income statement to a cash basis.