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Information from the Balance Sheet and Statement of Income are given below for Novak Inc., a private company reporting under ASPE, for the year ended
Information from the Balance Sheet and Statement of Income are given below for Novak Inc., a private company reporting under ASPE, for the year ended December 31. Comparative Balance Sheet Cash Accounts receivable Inventory Investments in land Property, plant, and equipment Accumulated depreciation 2017 $ 89,810 90,740 122,240 85,340 285,440 (48,560) $625,010 2016 $ 46,350 36,350 102,750 107,350 201,200 (39,200) $454,800 Accounts payable Accrued expenses payable Bonds payable Common shares Retained earnings $52,940 11,940 140,000 250,000 170,130 $625,010 $ 48,650 19,050 71,000 197,000 119,100 $454,800 Revenues Sales $287,500 Gain on disposal of equipment 7,850 295,350 Fynenses Revenues Sales Gain on disposal of equipment $287,500 7,850 295,350 Expenses Cost of goods sold Depreciation expense Operating expenses Income tax expense Interest expense $ 95,750 56,300 14,470 37,000 2,750 206,270 Profit $ 89,080 Additional Information: 1. Investments in land were sold at cost during 2017, 2. Equipment costing $55,440 was sold for $16,350, resulting in a gain. 3. Common shares were issued in exchange for some equipment during the year. No other shares were issued. 4. The remaining purchases of equipment were paid for in cash. Prepare a Cash Flow Statement for the year ended December 31, 2017 using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -45,000 or in parenthesis e.g. (45,000).) NOVAK INC. Cash Flow Statement - Direct Method NOVAK INC. Cash Flow Statement - Direct Method $ > $ Note X: Significant noncash investing and financing activities: Equipment with a cost of $ was exchanged for common shares
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