NOVAK INC. Statement of Financial Position As at May 31 Current asscts 2017 2016 Cash S34,250 $20,150 80,730 56,530 188,650 199,680 8,470 7,220 312,100 283,580 595,500 504,500 153,150 122,150 442,350 382,350 $754,450 $665,930 Accounts receivable Prepaid expenses Total current assets Plant assets Less: Accumulated depreciation Net plant assets Total assets Current llabllltles Accounts payable Salaries and wages payable Interest payable $119,930 $115,930 60,490 72,220 25,610 23,280 206,030 211,430 77,560 103,D0D 283,590 314,430 Total current liabilities Mortgage payable Total liabilities Shareholders' equity Common shares 336,190 280,DoD 134,670 71,500 470,860 351,500 Total liabilities and shareholders' equity $754,450 $665,930 Retained earnings Total shareholders' equity NOVAK INC. Income Statement For the Year Ended May 31, 2017 Sales Cost of goods sold Gross margin Expenses $1,332,520 810,000 522,52D Salaries and wages expense 195,000 65,200 23,200 31,000 314,400 208,120 66,400 5 141,720 Interest expense Other operating expenses Depreciation expense Total operating expenses Operating income Income tax expense Net earmings The following is additional information about transactions during the year ended May 31, 2017 for Novak Inc., which rollows IFRS. 1. Plant assets costing $91,000 were purchased by paying $50,000 in cash and issuing 5,000 common shares. 2. The other expenses relate to prepaid items. 3. In order to supplement its cash, Novak issued 4,000 additional common shares. 4. There were no penalties assessed for the repayment of mortgage. 5. Cash dividends of $78,550 were declared and paid at the end of the fiscal year. Prepare a statement of cash flows for Novak Inc. for the year ended May 31, 2017, using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or In parenthesis e.g. (15,000).)