Current Attempt in Progress

Novak Corporation had the following $2025$ income statement.

Sales revenue

Cost of goods sold

Gross profit

Operating expenses $($includes depreciation of $$20,000)$

Net income

$$212,000$

$118,000$

$94,000$

$[47,000],[$$$47,000]$

The following accounts increased during $2025$: Accounts Receivable $$11,000,$ Inventory $$10,000,$ and Accounts Payable $$12,000.$ Prepare the cash flows from operating activities section of Novak's $2025$ statement of cash flows using the direct method.

NOVAK CORPORATION

Statement of Cash Flows$-$Direct Method $($Partial$)$

Cash Flows from Operstling Actlvitles

Net Income

Cagh Poyment for Operating Expenses