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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 | |||||
Assets | 2020 | 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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