Comparative balance sheet accounts of Novak Company are presented below. Novak Company Comparative Balance Sheet Accounts As of December 31 2025 2024 Debit Balances Cash $69,600 $50,600 Accounts Receivable 155,000 130,400 Inventory 75,000 60,600 Debt Investments (available-for-sale) 55,400 84,600 Equipment 70,600 48,000 Buildings 146,400 146,400 Land 40,300 25,300 Totals $612,300 $545,900 Credit Balances Allowance for Doubtful Accounts $10,000 $8,100 I cuit Balances Allowance for Doubtful Accounts $10,000 $8,100 Accumulated Depreciation-Equipment 21,100 13,800 Accumulated Depreciation-Buildings 37,000 28,200 Accounts Payable 65,700 60,100 Income Taxes Payable 12,100 9,900 Long-Term Notes Payable 62,000 70,000 Common Stock 310,000 260,000 Retained Earnings 94,400 95,800 Totals $612,300 $545,900 Additional data: 1. Equipment that cost $9,900 and was 60% depreciated was sold in 2025. 2. Cash dividends were declared and paid during the year. 3. Common stock was issued in exchange for land. 4. Debt investments that cost $34,700 were sold during the year. 5. There were no write-offs of uncollectible accounts during the year. Novak's 2025 income statement is as follows. Sales revenue $951,500 Less: Cost of goods sold 599,500 Gross profit 352,000 Less: Operating expenses (includes depreciation expense and bad debt expense) 250,900 Income from operations 101,100 Other revenues and expenses Gain on sale of investments Loss on sale of equipment Income before taxes Income taxes Net income (a) Your ance correct $15,000 (2,900) 12,100 113,200 44,800 $68,400 Prepare a statement of cash flows 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 COMPANY Statement of Cash Flows For the Year Ended December 31, 2025 Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense Increase in Accounts Receivable (Net) Increase in Inventory Decrease in Income Taxes Payable Decrease in Income Taxes Payable : GA $ Question 1 of 2 < > Decrease in Income Taxes Payable > Net Cash Provided by Operating Activities > > 25/50 E $ $ > > > > > > > >