NOVAK COMPANY Comparative Balance Sheets December 31 Assets 2020 2019 Cash $73,000 $22,000 Accounts receivable 88,000 77,000 Inventory 168,000 194,000 Land 72,000 98,000 Equipment 263,000 200,000 Accumulated depreciation-equipment (66,000) (32,000) Total $598,000 $559,000 Liabilities and Stockholders' Equity Accounts payable $37,000 $47.000 Bonds payable 149.000 213,000 Common stock ($1 par) 216,000 176.000 Retained earnings 196,000 123,000 Total $590,000 $559,000 Additional information: 1. Net income for 2020 was $95,000. 2. Cash dividends of $22,000 were declared and paid. 3. Bonds payable amounting to $64,000 were redeemed for cash $64,000. A. Common stock was issued for $40,000 cash, 5. Equipment that cost $50,000 and had a book value of $28,000 was sold for $37,000 during 2020; land was sold at cost. (a) Prepare a statement of cash flows for 2020 using the indirect method. (Show amounts that decrease cash flow with either a sign eg -15,000 or in parenthesis eg. (15,000) NOVAK COMPANY Statement of Cash Flows Adjustments to reconcile net income to IT