Novak Inc., a greeting card company, had the following statements prepared as of December 31, 2017. NOVAK INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $6,100 $6,900 Accounts receivable 61,900 50,600 Short-term debt investments (available-for-sale) 34,700 18,100 Inventory 40,000 59,400 Prepaid rent 5,000 4,000 Equipment 152,800 128,900 Accumulated depreciation-equipment (34,900) (25,100) Copyrights 46,100 50,400 Total assets $311,700 $293,200 Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock, $10 par Contributed capital, common stock Retained earnings Total liabilities & stockholders' equity $45,800 $40,100 3,900 6,000 8,100 4,000 8,100 10,100 59,900 69,400 100,000 100,000 30,000 30,000 55,900 33,600 $311,700 $293,200 NOVAK INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2017 Sales revenue $339,275 Cost of goods sold 174,600 Gross profit 164,675 Operating expenses 120,100 Operating income 44,575 Interest expense $11,200 Gain on sale of equipment 2,000 9,200 Income before tax 35,375 Income tax expense 7,075 Net income $28,300 1. Dividends in the amount of $6,000 were declared and paid during 2017. 2 Depreciation expense and amortization expense are included in operating expenses. 3. No unrealized gains or losses have occurred on the investments during the year. Equipment that had a cost of $20,100 and was 70% depreciated was sold during 2017. 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 INC. Statement of Cash Flows