Question
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 depreciationequipment (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).)
Create a statement of Cash Flows
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