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The following changes took place last year in Herald Company's balance sheet accounts:

The following changes took place last year in Herald Company's balance sheet accounts:
ebit Balance Accounts
Credit Balance Accounts
Cash
$
20
I
Accumulated Depreciation
$
40
I
Accounts Receivable
$
10
D
Accounts Payable
$
20
I
Inventory
$
30
I
Accrued Liabilities
$
10
D
Prepaid Expenses
$
5
D
Taxes Payable
$
10
I
Long-Term Investments
$
30
D
Bonds Payable
$
20
D
Plant and Equipment
$
150
I
Deferred Income Taxes
$
5
I
Land
$
30
D
Common Stock
$
40
I




Retained Earnings
$
40
I
D = Decrease; I = Increase
Long-term investments that had cost the company $50 were sold during the year for $45, and land that had cost $30 was sold for $70. In addition, the company declared and paid $35 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



$
600
Cost of goods sold




250
Gross margin




350
Selling and administrative expenses




280
Net operating income




70
Nonoperating items:





Loss on sale of investments
$
(5
)


Gain on sale of land

40


35
Income before taxes




105
Income taxes




30
Net income



$
75
The company's beginning cash balance was $100, and its ending balance was $120.

Requirement 1:
Use the indirect method to determine the net cash provided by operating activities for the year.
Net cash provided by operating activities
$

Requirement 2:
Prepare a statement of cash flows for the year. (Negative amount should be indicated by a minus sign. Omit the "$" sign in your response.)

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