$7,445,200 Problem 12-03A (Video) The income statement of Novak Corp. is presented here. 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. Novak Corp. Partial Statement of Cash Flows Adjustments to reconcile net income to >