$7,445,200 Novak Corp. Income Statement For the Year Ended November 30, 2020 Sales revenue Cost of goods sold Beginning inventory $1,902,700 Purchases 4,414,000 Goods available for sale 6,316,700 Ending inventory 1,330,700 Total cost of goods sold Gross profit Operating expenses Net income 4,986,000 2,459,200 1,196,200 $1,263,000 Additional information: 1. Accounts receivable increased $190,000 during the year, and inventory decreased $572,000. 2. Prepaid expenses increased $169,900 during the year. 3. Accounts payable to suppliers of merchandise decreased $342,700 during the year. 4. Accrued expenses payable decreased $106,900 during the year. 5. Operating expenses include depreciation expense of $97,800. Prepare the operating activities section of the statement of cash flows for the year ended November 30, 2020, for Novak Corp., using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Novak Corp Partial Statement of Cash Flows For the Year Ended November 30, 2020 Cash Flows from Operating Activities Net Income 1263000 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense 97800 Increase in Accounts Receivable 190000 Decrease in Inventory 572000 OHITUO Increase in Prepaid Expenses 169900 Decrease in Accounts Payable 342700 Decrease in Accrued Expenses Payable 106900 139700 T Net Cash Provided by Operating Activities 1123300