Practice Do It! Review 1 Novak Corp. reported the following information for 2017 Novak Corp. Comparative Balance Sheets Assets Cash Accounts receivable Inventory Prepaid expenses Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment 2017 $60,160 61,450 44,030 6,020 55,080 198,970 Change Increase/Decrease $23,980 Increase 39,230 Increase 44,030 Increase 2,040 Increase 15,500 Decrease 2016 $36,180 22,220 3,980 70,580 198,970 7,070 Increase 115,180 Increase (27,600)(9,970)17,630 Increase (21,210) (14,140 ) 183,700 68,520 Totals Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock ($1 par) Retained earnings $560,600 $376,340 $40,100 10,010 149,860 60,370 116,000 $560,600 $376,340 $42,920 99,830 228,840 189,010 $2,820 Increase 10,010 Decrease 50,030 Decrease 168,470 Increase 73,010 Increase Totals Novak Corp. For the Year Ended December 31, 2017 $942,640 Sales revenue Cost of goods sold Operating expenses Interest expense Loss on disposal of equipment Income before income taxes Income tax expense Net income $475,040 230,000 12,040 2,010 719,090 223,550 64,840 $158,710 Additional information: 1. Operating expenses include depreciation expense of $39,900 2. Land was sold at its book value for cash 3. Cash dividends of $85,700 were declared and paid in 2017 4. Equipment with a cost of $166,250 was purchased for cash. Equipment with a cost of $51,070 and a book value of $35,870 was sold for $33,860 cash 5. Bonds of $50,030 were redeemed at their face value for cash 6. Common stock ($1 par) of $168,470 was issued for cash Use this information to 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 Corp Statenent of Cash F Method Adjustments to reconcile net income to