NOVAK INC. Statement of Comprehensive Income For the Year Ended June 30, 2020 Net sales $325,000 Cost of goods sold 161,000 164,000 124,500 Gross profit Operating expenses Income from operations Interest expense Income before income tax 39,500 8.700 30,800 Income tax 5,900 24,900 Net income Other comprehensive income Unrealized gain or loss-OCI Comprehensive income 2,100 $ 27,000 Additional information: 1. Novak follows IFRS. Assume that interest is treated as an operating activity for purposes of the statement of cash flows. 2. Operating expenses include $9,900 in depreciation expense. 3. There were no disposals of equipment during the year. 4. Common shares were issued for cash. 5. During the year, Novak acquired $9,000 of equipment in exchange for long-term notes payable. The comparative statement of financial position of Novak Inc. as at June 30, 2020, and a statement of comprehensive income for the 2020 fiscal year follow: NOVAK INC. Statement of Financial Position June 30, 2020 June 30 Assets 2020 2019 Cash $ 20,000 $ 37,000 Accounts receivable 85,700 71,300 Inventory 103,600 101,200 Prepaid expenses 3,000 5,400 FV-OCI investments 47,600 45,500 175,000 158,000 Equipment Accumulated depreciation equipment (34,400) (24,500) Total $ 400,500 $393,900 Liabilities and Shareholders' Equity $ 114,000 $ 99,000 Accounts payable Income tax payable 1,700 3.000 6,000 0 Dividends payable Long-term notes payable Common shares 82,000 121,000 30,800 23,200 154,900 138,700 Retained earnings Accumulated other comprehensive income 11,100 9,000 Total $ 400,500 $393,900 Prepare the statement of cash flows for Novak for the year ended June 30, 2020, using the indirect method along with any necessary note disclosure. (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 $ Adjustments to reconcile net income to net cash provided by operating activities: $