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A comparative statement of financial position for Novak Industries Inc. follows: NOVAK INDUSTRIES INC. Statement of Financial Position December 31, 2020 December 31 Assets 2020

A comparative statement of financial position for Novak Industries Inc. follows:


NOVAK INDUSTRIES INC.
Statement of Financial Position
December 31, 2020

December 31
Assets2020


2019

Cash
$ 21,200


$ 34,200

Accounts receivable
122,000


55,400

Inventory
225,000


194,000

Land
90,000


128,000

Equipment
263,000


203,000

Accumulated depreciation—equipment
( 69,200)
( 42,900)
    Total
$ 652,000


$ 571,700







Liabilities and Shareholders’ Equity





Accounts payable
$ 53,800


$ 59,500
Bonds payable
168,600


209,600

Common shares
220,000


179,000

Retained earnings
209,600


123,600

    Total$ 652,000


$ 571,700

Additional information:


1.
Net income for the fiscal year ending December 31, 2020, was $ 147,000.
2.
Cash dividends of $ 61,000 were declared and paid. Dividends paid are treated as financing activities.
3.
Bonds payable amounting to $ 41,000 were retired through issuance of common shares.
4.
Land was sold at a gain of $ 6,000.
5.
No equipment was sold during the year.


(a)


Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

During the year, Novak retired $  in bonds payable by issuing common shares.

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