Presented below are the financial statements of Novak Company.

Novak Company Comparative Balance Sheets December 31
Assets		2022			2021
Cash		$ 112,000			$ 64,000
Accounts receivable		64,000			44,800
Inventory		89,600			64,000
Property, plant, and equipment		192,000			249,600
Accumulated depreciation		(102,400	)		(76,800	)
Total		$355,200			$345,600
Liabilities and Stockholders Equity
Accounts payable		$ 60,800			$ 48,000
Income taxes payable		22,400			25,600
Bonds payable		54,400			105,600
Common stock		57,600			44,800
Retained earnings		160,000			121,600
Total		$355,200			$345,600

Novak Company Income Statement For the Year Ended December 31, 2022
Sales revenue				$774,400
Cost of goods sold				560,000
Gross profit				214,400
Selling expenses		$57,600
Administrative expenses		19,200		76,800
Income from operations				137,600
Interest expense				9,600
Income before income taxes				128,000
Income tax expense				25,600
Net income				$ 102,400

Additional data:

1.		Depreciation expense was $56,000.
2.		Dividends declared and paid were $64,000.
3.		During the year equipment was sold for $27,200 cash. This equipment cost $57,600 originally and had accumulated depreciation of $30,400 at the time of sale.

(a)

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 Company Statement of Cash Flows For the Year Ended December 31, 2022 Cash Flows from Operating Activities Not Income 102400 Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expeme $ 56000 Increase in Accounts Receivable TII 119,200) Increase inventory 125600) Increase in Accounts Payable 12800 Decrease in Income Taxes Payable 2001 20800 Net Cash Provided by Operating Activities 123200 Cash Flows from Investing Activities Sale of Equipment 27200 Question 1 of 2