Practice Problem 1 The following are the financial statements of Novak Corp Novak Corp Comparative Balance Sheets December 31 Asset Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment (29,800) (23,400) 2019 2018 $36,300 $ 19,300 32,200 20,000 30,300 20,400 59,600 77,900 Total $128,600 $114,200 Liabilities and Stockholders' Equity Accounts payable Income taxes payable Bonds payable Common stock Retained earnings 28,200 16,700 8,400 26,300 33,200 17,20014,200 49,400 41,700 $128,600 $114,200 7,500 Total Novak Corp Income Statement For the Year Ended December 31, 2019 Sales revenue $241,700 175 Sales revenue Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before income taxes Income tax expense Net income $241,700 175,300 66,400 24,600 41,800 2,000 39,800 7,700 32,100 Additional data 1. Dividends declared and paid were $24,400 2. During the year, equipment was sold for $9,800 cash. This equipment cost $18,300 originally and had a book value of $9,800 at the time of sale 3. All depreciation expense, $14,900, is in the operating expenses 4. All sales and purchases are on account. 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 Statement of Cash Flows Adjustments to reconcile net income to